Markets On Edge Into Monday: What You Need To Know
Submitted by QTR's Fringe Finance
The war between Israel, the United States, and Iran has entered its ninth day and is expanding across the region. Leave it to me to eat mild crow on my assumption that the conflict would be over in just days, as counting the war will soon spill over into weeks. That still doesn’t mean this will wind up a prolonged, Iraq-style conflict, but score one for the libertarians that told me I’m an idiot last week. We’ll see how this week plays out, and here’s what you need to know heading into Monday morning.
Israeli forces carried out overnight strikes on fuel depots near Tehran, sending thick black smoke over the capital as part of a broader campaign targeting Iran’s military and energy infrastructure, Reuters reported Sunday morning. Israeli Prime Minister Benjamin Netanyahu said the offensive will continue without mercy in an effort to destabilize Iran’s leadership, while U.S. President Donald Trump indicated the conflict may only end once Iran’s military and ruling structure are destroyed.
Score another one for the libertarians in my comments section, becuase the conflict is also spreading across the Gulf and the wider Middle East. Iran launched drones and missiles toward Saudi Arabia, Kuwait, the United Arab Emirates, and Bahrain, with the UAE intercepting many projectiles while Bahrain reported damage to a desalination plant. Fighting has also intensified in Lebanon after the Iran-backed group Hezbollah launched rockets and drones into Israel, prompting Israeli strikes in Beirut and across southern Lebanon.
Inside Iran, the political situation is shifting after the killing of Supreme Leader Ali Khamenei early in the conflict. Iran’s clerical leadership is moving toward naming a successor, with indications his son Mojtaba Khamenei could take power, a move that would keep hardliners in control. Iran says more than 1,300 civilians have been killed by U.S.-Israeli strikes, while Iranian attacks have killed people in Israel, targeted U.S. bases in the region, and widened the conflict into a multi-front regional war. Reportedly, a new Supreme Leader has been chosen in Iran, though not announced yet.
Portfolio Update & Macro Outlook
On average, my 26 Stocks I’m Watching For 2026 are still outperforming the S&P 500, now down about -1.5% on the year, by roughly 5%. I expect this trend to hold, but wanted to comment on the major sectors in the portfolio and how they could be affected by the war...(READ THIS FULL COLUMN AND PORTFOLIO UPDATE HERE).