Markets Steady as Iran Tensions Flare

The week’s trading was dominated by renewed hostilities between the United States and Iran after President Donald Trump said the ceasefire was over. The United States launched new airstrikes on Iran, and Iran responded by targeting U.S. allies in the Middle East, contributing to bouts of volatility across global assets. Markets initially reacted to the escalation but later showed signs of stabilizing as investors reassessed the balance between geopolitical risk and economic drivers.

These developments kept traders focused on conflict headlines, yet price action across asset classes diverged. While energy markets remained sensitive to the risk of further disruptions, equities and some commodities recovered earlier losses, suggesting a partial return of risk appetite by the end of the week.

U.S. stocks bounced back on July 9, 2026, following weakness tied to the conflict news. The S&P 500 (SPX) climbed 0.8% and more than recovered its loss from the prior session, signaling renewed buying interest in risk assets. The Dow Jones Industrial Average (DJIA) added 0.3%, and the Nasdaq composite advanced 1.3%, with technology-related shares featuring prominently in the rebound.

Asian markets extended the improvement a day later. On July 10, Asian stocks mostly advanced, helped by demand for technology-related names. South Korea’s Kospi gained 2.5% to 7,475.94, marking one of the stronger regional performances and underscoring investor willingness to look beyond immediate geopolitical concerns.

Oil markets reflected the shifting risk narrative. Earlier in the week, prices had strengthened amid fears that renewed strikes between the United States and Iran could threaten supplies from the Middle East. By July 9, Brent crude (UKOIL), the international benchmark, stood at $76.30 a barrel, with traders closely watching any signs of further disruption.

As financial markets calmed, crude prices edged lower. In Asian trading on July 10, Brent crude (UKOIL) slipped 0.8% to $75.66 per barrel, while benchmark U.S. crude fell 0.9% to $71.47 a barrel. The moderation suggested some unwinding of the conflict-driven risk premium, even as tensions in the region persisted.

Industrial metals offered a contrast to the earlier risk-off tone. Copper (HG1) was little changed on Friday, July 10, but was on track for its second straight weekly gain. For the week, the metal was up around 1%, mirroring the broader recovery in risk assets that had regained ground since the fresh U.S. strikes on Iran earlier in the week.

The firmness in copper (HG1) prices indicated that traders were willing to look through potential demand headwinds linked to geopolitical uncertainty. Alongside the rebound in global equities, the metal’s advance highlighted a market environment where underlying growth and sector-specific themes continued to exert influence despite ongoing tensions in the Middle East.