Friday's Israeli missile strike on Iran heightens concerns of escalating retaliation between Middle Eastern powers, posing weeks of uncertainty for global markets. Despite this, reactions from oil prices, stocks, and traditional safe-haven assets have been relatively subdued. Tehran's indication of no immediate retaliation and muted initial response further tempered market reactions. While U.S. crude initially surged 4% to $86.3 per barrel, it retreated from yearly highs afterward. The dollar saw modest gains. World stocks, already weighed down by U.S. interest rate worries and mixed corporate earnings, saw broad declines, though major indices remained under 1% lower.

Asia Pacific markets
Taiwan's main bourse notably underperformed, dropping nearly 4%.
The US Dollar held near highs against the Japanese Yen, while the Australian dollar rebounded from support at $0.6380.

European markets
The European Central Bank appears poised to begin rate cuts possibly as early as June. The single european currency and the Sterling like the Aussie bounced back above the recent lows against the US Dollar.

American markets
Federal Reserve officials signal a reluctance to cut interest rates, citing strong labor market and business activity.
Key events influencing U.S. markets include corporate earnings, the IMF Spring meeting in Washington, and speeches from central bank policymakers. European Central Bank's Joachim Nagel and Bank of England's David Ramsden and Catherine Mann are among those scheduled to speak, along with Bank of Canada Governor Tiff Macklem.