- Risk sentiment suffered as oil rose by up to 5% after Hamas' surprise attack on Israel sparked fears of a supply shock. On haven bids, gold rose alongside the dollar.
- WTI rose above $86 per barrel, while Brent reached $89, as traders braced for a larger conflict after the US announced the deployment of warships to the region. According to the Wall Street Journal, Iranian security officials assisted Hamas in planning its attack on Israel, which could lead to retaliation against Tehran.
- The dollar rose against the euro and the pound, while riskier currencies fell. The yen, another popular haven for investors, strengthened. Meanwhile, Australian and New Zealand bonds recovered from early losses, while US stock futures continued to fall.
- The aftermath of Israel's attacks reverberated through Middle Eastern markets on Sunday, sending stocks down. Major regional equity indices fell, led by a 6.5% drop in Israel's benchmark TA-35 stock index, which posted its biggest loss in more than three years.
