Operation Epic Fury means new risks for markets
While multiple explosions were heard in Tehran, Iran, on March 1, 2026, thick smoke clouds rise in residential areas of the Iranian capital following air strikes during the ongoing US-Israeli attacks.
Fateme Bahrami / | Anatolia | Getty Images
We hear this all the time on CNBC; Markets hate uncertainty, and the events of the last 48 hours have changed the face of international politics in a way that has investors around the world scrambling to understand the consequences.
The coordinated strikes against Iran by US and Israeli forces – Operation Epic Rage – have disrupted the global order that has been in place since the end of World War II and triggered a new era of politics not only in the Middle East but also among international allies and rivals.
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How will markets and investors react? What are the immediate reactions to long-term adjustments that need to be made in investment strategies?
Here are some of the assets to watch throughout the week.
Sales wave in the Middle East
Stock markets in the Middle East came under pressure on Sunday in the first trading session for stocks since the attack. Saudi Arabia’s Tadawul index, Oman’s Muscat index and Bahrain’s stock exchange were trading in the red, while many other markets in the region did not open. Indices in Dubai, Abu Dhabi and Israel will resume trading on Monday. The impact is expected to be reflected in global markets.
oil trading
Following the attacks, oil markets will be the epicenter of volatility. According to Verisk Maplecroft, traders are predicting the price of Brent crude oil will rise above $80 per barrel. The outlook comes despite OPEC’s recent decision to increase production earlier and more than previously planned.
Oil prices expected to rise after Operation Epic Fury
Blackout in the Strait of Hormuz
With the closure of the Strait of Hormuz, the fluctuation in oil prices will increase further. Global shipping companies including Maersk, MSC, Hapag-Lloyd and others have suspended all ship crossings on the route until further notice. Iran’s Revolutionary Guard claimed to have hit several oil tankers in the Gulf in retaliatory attacks. It is unknown when the strait will open. Some ships were being rerouted around Africa, adding time and cost to shipments.
airline chaos
There has been major disruption to air travel, with almost all of the Middle East region’s airspace closed since the attacks began. More than 1,500 flights were canceled across the region on Sunday, while flight tracking site FlightAware said more than 19,000 flights were delayed worldwide. Airlines are expected to remain under pressure as carriers try to reopen routes and operate repatriation flights.
AI and Iran
The strikes also intersected with the market’s broader focus on artificial intelligence. Until recently, investors focused on the potential of artificial intelligence to reshape industries around the world. While this theme may seem far removed from events in Iran, there appears to be an overlap between the two. The US military used Anthropic’s Claude AI technology to support its attacks on Iran, according to a report from Axios. It was blacklisted by the Pentagon over how its technology was used. Anthropic resisted the Pentagon’s demands to allow unrestricted military use of Claude, and the Department of Defense moved to label the company a “supply chain risk” over this disagreement.
what’s next
It remains unclear what the rest of the week will bring. Minister Donald Trump told CNBC’s Joe Kernen that US military operations in Iran are “ahead of plan.” In a market frightened by uncertainty, it will be the ‘known unknowns’ that keep investors on edge.
