Romanian Defence Ministry says a drone briefly breached Romanian airspace during a Russian attack on Ukraine

The breach of Romanian airspace by a drone amid the ongoing Russian attacks on Ukraine signals a potential escalation in regional tensions, which may lead to increased risk aversion in the markets. This scenario could elevate demand for safe-haven assets like gold and the JPY, while impacting currencies such as the EUR and GBP as sentiment shifts. Traders should monitor energy prices as well, as geopolitical disruptions often lead to volatility in oil and gas markets.