Russia's Kremlin says Russia will act if other nations allow Ukraine to use their airspace for drone strikes on Russian Baltic ports, adding the military is monitoring the situation and formulating strategies

The Kremlin's warning about potential action against nations permitting Ukrainian drone strikes suggests escalating tensions in the region. This could lead to heightened volatility in energy markets and safe-haven assets like gold, while impacting sentiment across currencies such as the USD and EUR. Traders should be cautious of any immediate market reactions, especially in commodities and forex, as the situation evolves.