"There are some similarities in the way markets are reacting to the Middle East war to the early days of the Russia-Ukraine conflict in February 2022.Energy market volatility has rivalled the turmoil seen after Russia invaded Ukraine, with Brent crude oil soaring around 40% since the U.S.-Israel strikes two weeks ago and nearing $120 on Monday. Elsewhere gold, which spiked almost 8% when Russia invaded Ukraine, has fallen some 3% since the Iran war erupted.RBC strategist Christopher Louney said the clear line from the crisis to energy markets meant there was less "immediate need for a general-purpose hedge", contributing to gold's weakness alongside higher bond yields and the dollar.Four years ago, European stocks faced a sharp selloff, dropping about 10% within the first two weeks of war. At roughly 25, the VIX index of equity volatility is running warm, but below April 2025's highs of 60 and below the COVID highs of 80.In February 2022, it touched a high of 38, before retreating.The ICE BofA MOVE index of bond volatility has risen to 95, its highest since June 2025, still below a high of 140 in early March 2022.
Author: Reuters
Published at: 2026-03-13 14:06:06
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