Tech Stocks Recover While Investors Await Key Inflation Data

The EUR/USD pair moved lower during Tuesday’s early Asian trading hours, slipping toward the 1.1620 area as the US Dollar gained support from rising geopolitical tensions in the Middle East.

The Greenback attracted safe-haven demand amid concerns that the conflict in the region could escalate and potentially disrupt global energy supplies, which in turn may pose risks to global economic growth.

Iran’s Islamic Revolutionary Guard Corps (IRGC) stated that Tehran—not the United States—will determine when the conflict ends, warning that continued US and Israeli attacks could lead Iran to block regional oil exports. Meanwhile, US President Donald Trump said late Monday that he intends to waive certain oil-related sanctions and may deploy the US Navy to escort tankers through the Strait of Hormuz. Trump also suggested that the conflict with Iran could be resolved “very soon.”

Ongoing uncertainty and the absence of clear progress toward a diplomatic solution have supported demand for the US Dollar, weighing on the EUR/USD pair.

Higher crude oil prices are also becoming a concern for the Eurozone economy. As Europe relies heavily on imported energy, rising oil costs could fuel inflation while simultaneously slowing economic activity, increasing the risk of stagflation.

Market expectations for European Central Bank policy have also shifted. According to Reuters, traders are now pricing in the possibility that the ECB could implement as many as two 25-basis-point rate hikes this year, whereas earlier forecasts suggested interest rates would remain unchanged through 2026.

Bitcoin moved higher on Monday after a volatile weekend, as broader financial markets reacted to shifting developments in the Middle East and comments from US President Donald Trump suggesting the conflict with Iran could be approaching a resolution.

Bitcoin had closed the previous week in positive territory while many traditional risk assets declined, partly because the digital asset market has less direct exposure to oil price fluctuations. However, the cryptocurrency lost some momentum over the weekend before staging a rebound.

The conflict has now entered its second week with little indication of de-escalation. Iran recently named Mojtaba Khamenei as the successor to Supreme Leader Ali Khamenei, a development that investors interpret as signaling the continuation of the country’s hardline political stance and potentially extended geopolitical tensions.

Bitcoin frequently behaves like a high-beta risk asset during periods of macroeconomic uncertainty, meaning it often declines when investors move away from riskier assets and rises when market sentiment improves. US equities closed sharply higher on Monday following Trump’s comments, supporting the recovery in crypto prices.

Moreover, bitcoin treasury firm Strategy disclosed on Monday that it acquired an additional 17,994 BTC between March 2 and March 8 for approximately $1.28 billion, according to a filing with the US Securities and Exchange Commission.

Following the latest purchase, Strategy’s total Bitcoin holdings increased to 738,731 BTC, currently worth roughly $50 billion.

Oil prices declined early on Tuesday after reaching their highest levels in more than three years during the previous session, as comments from US President Donald Trump suggesting the Middle East conflict could end soon eased concerns about prolonged disruptions to global energy supplies.

Crude prices had surged above the $100 mark on Monday, reaching their highest levels since mid-2022. The rally was driven by fears that escalating military tensions involving the United States, Israel, and Iran could threaten oil shipments, especially as Saudi Arabia and other producers maintained supply curbs.

Market sentiment shifted later in the session after Russian President Vladimir Putin reportedly held a phone conversation with Trump and presented proposals aimed at reaching a swift resolution to the conflict in Iran. The development helped ease fears of a prolonged disruption to global oil flows.

Trump also said in a CBS News interview that the military operation against Iran was “very complete” and progressing much faster than the initial four- to five-week timeline previously suggested by his administration.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) responded to Trump’s remarks by stating that Tehran would ultimately decide when the conflict ends. The group warned that if US and Israeli attacks persist, Iran could prevent any oil exports from the region, according to state media.

Despite these warnings, oil prices remain under pressure amid reports that the Trump administration is considering several measures to ease price spikes. These options reportedly include relaxing sanctions on Russian oil exports and potentially releasing emergency crude supplies from strategic reserves.

The Group of Seven (G7) nations said on Monday they are ready to take “necessary measures” to address rising global oil prices, though they stopped short of announcing any immediate release of emergency reserves.

US stocks recovered from earlier losses to close higher on Monday, staging a sharp late-session rebound after President Donald Trump suggested the conflict involving the United States, Israel, and Iran could end sooner than expected.

All three major indexes reversed course in the final hour of trading after Trump said the military campaign was progressing “very far ahead” of the administration’s original four- to five-week timeline.

Earlier in the session, markets were pressured as oil prices surged to their highest levels since mid-2022. The spike was driven by supply concerns linked to shipping disruptions as the conflict with Iran entered its tenth day. Rising energy costs have fueled fears that inflation could accelerate again at a time when many US households are already facing affordability pressures.

At the same time, concerns about economic conditions are growing. Friday’s weaker-than-expected US jobs report, combined with higher energy prices, has raised the risk of stagflation—an environment where slow economic growth coincides with persistent inflation. Such a scenario could complicate the US Federal Reserve’s policy decisions as it tries to balance its goals of stable prices and maximum employment.

Investors are now looking ahead to several important economic reports scheduled later this week. These include the Labor Department’s Consumer Price Index, the Commerce Department’s updated estimate of fourth-quarter GDP, and its Personal Consumption Expenditures report—one of the Federal Reserve’s preferred measures of inflation.