Iran Conflict Fuels Market Volatility: Oil Surges, Fed Policy & China Data Awaited

• Escalating US-Israel-Iran tensions drive oil prices up, raising stagflation fears and pushing the US Dollar Index to 100.54, its highest since May 2025.
• Markets now expect only one Fed rate cut this year due to elevated energy costs and persistent inflation (Core PCE at 3.1%), complicating policy outlook.
• Precious metals like COMEX gold and silver faced pressure from a stronger dollar and higher Treasury yields, despite People's Bank of China purchases.
• Base metals showed mixed performance; Aluminum briefly hit multi-year highs due to Strait of Hormuz disruptions, while Copper fell.
• Crude oil saw extreme volatility, with WTI and Brent gaining ~10% weekly; Mojtaba Khamenei's remarks and US Navy's stance signal continued supply risks.