Iran-Israel Conflict and G7 Summit Dominate Global Headlines

Market resilience, rising oil prices, and fresh geopolitical tensions shape the global outlook

US Futures Climb Despite Middle East Escalation

Global investors are showing cautious optimism despite escalating violence between Israel and Iran, ongoing economic uncertainty, and Trump-era trade policies.

As of early Monday:

• Dow futures rose by 181 points (+0.4%)
• S&P 500 futures increased by 29 points (+0.5%)
• Nasdaq 100 futures climbed by 113 points (+0.5%)

Friday saw markets drop due to airstrikes between Israel and Iran, pushing up defence stocks while weighing on airlines, which face rising fuel costs.

Still, stable inflation data and jobless claims helped calm nerves, with attention now turning to the Federal Reserve’s rate decision on Wednesday. Most analysts expect rates to remain unchanged.

Israel-Iran Conflict Intensifies

Tensions in the Middle East escalated over the weekend with Israel launching fresh strikes on Iran’s nuclear and military infrastructure. Iran has refused to engage in US-led ceasefire talks, and both sides have issued warnings of further retaliation.

• Oil prices surged again, with Brent crude hitting $74.53 per barrel
• Israel targeted missile and nuclear-related sites in a sustained aerial assault
• Iran continues to resist international mediation from Oman and Qatar

With civilian casualties mounting, analysts fear the region could spiral into broader conflict, affecting energy supplies and global stability.

G7 Summit: Diplomacy and Tariffs in the Spotlight

Leaders from the Group of Seven (G7) nations are convening in Canada this week, with the Iran-Israel crisis a top priority. German Chancellor Friedrich Merz is expected to push for a statement supporting Israel’s right to defend itself while opposing Iran’s nuclear ambitions.

However, diplomatic efforts are complicated by tensions with US President Donald Trump, who is pressuring allies with new “reciprocal” tariffs. Canadian Prime Minister Mark Carney has warned that Canada may retaliate if US tariffs on steel and aluminium persist.

The summit is expected to focus on peace, security, and economic cooperation, but underlying trade friction could overshadow progress.

Victoria’s Secret Faces Activist Investor Challenge

Barington Capital Group plans to overhaul Victoria’s Secret’s board, citing poor performance and value loss since its split from L Brands in 2021.

• Barington holds a 1% stake in the company
• It aims to replace most or all of the board
• The investor opposes the firm’s “poison pill” plan, designed to prevent hostile takeovers

Victoria’s Secret has seen its shares drop by 55% in 2025, amid weakening consumer demand and strategic missteps.

Kering Shares Surge on CEO Appointment Reports

Kering (EPA:PRTP) shares soared over 7% following reports that Luca de Meo, former Renault CEO, is set to become the company’s next chief executive.

• François-Henri Pinault will remain as chairman
• De Meo is known for turnaround leadership at Renault, Seat, Toyota, Fiat, and Volkswagen
• Analysts welcomed the move as a sign of stronger executive governance

The appointment is seen as a step towards restoring investor confidence amid concerns over Kering’s recent performance in the luxury fashion sector.

Summary: Volatility Rises, Diplomacy Tested

• Markets rise cautiously amid Israel-Iran conflict
• Oil prices spike, raising inflation and energy concerns
• G7 summit to focus on Middle East and Trump’s tariffs
• Victoria’s Secret faces a boardroom battle
• Kering eyes stability with potential new leadership

As geopolitical tensions rise and trade disputes continue, 2025 is shaping up to be a pivotal year for markets, diplomacy, and corporate governance.

Sources: (Investing.com, ChatGPT)