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Geopolitical Volatility: Markets will be fixated on Donald Trump’s threats regarding a bombing campaign in Iran and the systemic risks posed by the continued blockade of the Strait of Hormuz.
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Critical U.S. Data: While Thursday’s GDP and PCE data provide context, Friday’s CPI release will reveal the true extent to which surging fuel prices are impacting the American economy.
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Testing Wall Street’s Foundations: With the S&P 500 defending levels near its peaks, the market will gauge whether the energy and banking sectors can offset tech-sector uncertainty ahead of the earnings season.
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Geopolitical Volatility: Markets will be fixated on Donald Trump’s threats regarding a bombing campaign in Iran and the systemic risks posed by the continued blockade of the Strait of Hormuz.
-
Critical U.S. Data: While Thursday’s GDP and PCE data provide context, Friday’s CPI release will reveal the true extent to which surging fuel prices are impacting the American economy.
-
Testing Wall Street’s Foundations: With the S&P 500 defending levels near its peaks, the market will gauge whether the energy and banking sectors can offset tech-sector uncertainty ahead of the earnings season.
Following the Easter break, Wall Street prepares to return to full capacity, though it is important to note that coming Monday, April 6, remains a bank holiday across many major global economies. While the first full week of April will bring several critical macroeconomic releases, market sentiment remains firmly tethered to the escalating friction between Iran and the United States. With crude oil prices now entrenched above the $100 mark and both bullion and equities retreating, investor focus in the coming days will center on three pivotal instruments: OIL, EURUSD, and the US500.
OIL
President Donald Trump’s latest address to the nation failed to soothe market anxieties, instead injecting a fresh wave of geopolitical uncertainty. It appears that the deadline for a diplomatic resolution—repeatedly extended and set for January 6—is now effectively void. This follows the President’s warning of a planned "significant" bombing campaign against Iran within the next two to three weeks, aimed at forcing a total capitulation. Meanwhile, the Strait of Hormuz remains blockaded, and Tehran continues its strikes against land-based targets and tankers. The situation is intensifying by the day; the coming week will be a litmus test for global risk, if exports through the Strait are not at least partially restored, the world may face the most severe energy crisis in history.
EURUSD
The upcoming week will be defined by heavyweight macroeconomic data from the U.S. On Thursday, we will see somewhat retrospective figures: February PCE inflation and a revised Q4 2025 GDP reading. However, the true test for the markets will be Friday’s release of the March CPI report. Preliminary forecasts suggest headline inflation could spike by as much as one percentage point over February, a direct consequence of extreme fuel price hikes. Investors will be watching closely to see how the dollar reacts; the greenback currently benefits from a flight to cash and European fragility under the weight of energy costs. Any further escalation in the Middle East next week could solidify the downward trend for EURUSD, while any signals of a peace breakthrough could trigger a sharp sell-off in the dollar.
US500
S&P 500 futures will enter the new week holding approximately 6% below their all-time highs, a resilient performance given the blockade of the Strait of Hormuz and the conflict in Iran. Nevertheless, Warren Buffett has suggested that the current correction is not yet deep enough to warrant significant buying. In the coming days, the equity markets' focus will be on assessing whether the current inflationary shock is structural. Furthermore, markets will begin positioning ahead of the imminent earnings season. Amid soaring operational costs, a failure to demonstrate the monetization of massive AI capital expenditures could provide a catalyst for a sell-off in tech giants. Investors may instead seek refuge in sectors more resilient to the crisis, such as energy and banking, which stand to benefit directly from market volatility and high commodity prices.
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