Global markets remained on edge as rising oil prices and geopolitical tensions rippled across sectors.
Airline stocks stayed under pressure despite fuel hedging efforts, while Fitch downgraded Paramount over its debt-heavy Warner Bros. Discovery deal.
Brent crude briefly surged above $85 on Middle East escalation fears, lifting energy volatility.
Meanwhile, Bitcoin swung sharply below $63,000 before rebounding, underscoring crypto’s continued sensitivity to macro risk and conflict-driven market sentiment.
Airline stocks remain under pressure
Qantas CEO Vanessa Hudson said the airline has “pretty good” fuel hedging in place, but warned that the latest jump in oil prices linked to the widening conflict involving the United States, Israel and Iran is a serious issue for aviation.
Speaking at the Australian Financial Review’s business summit, Hudson said Qantas was closely monitoring how the situation develops as higher fuel costs ripple through the sector.
Qantas said last week it had hedged 81% of its fuel needs for the second half of its financial year ending June 30, giving it some protection against near-term volatility.
Still, investors marked the stock lower, with Qantas shares down for a second straight session and ending the day about 1.8% weaker.
Paramount faces downgrade over WBD deal
Fitch Ratings downgraded Paramount Skydance and Paramount Global to junk status late Monday, citing the media giant’s planned $110 billion acquisition of Warner Bros Discovery.
The ratings agency cut long-term issuer ratings to BB+ from BBB-, the lowest investment-grade level, and placed them on watch for further cuts pending deal details.
Analysts flagged risks from the debt-funded buyout, which includes $54 billion in commitments and leaves the merged firm with about $79 billion in net debt atop Paramount’s existing $14 billion load.
The move ends a bidding war after Netflix backed out of its Warner deal.
Expected to close in Q3, the merger promises $6 billion in synergies but faces media sector headwinds and cash flow strains from content spending.
Moody’s and S&P had already flagged potential downgrades.
Brent crude surges past $85
Brent crude oil prices surged past $85 a barrel for the first time since 2024, driven by escalating Middle East tensions after US strikes on Iran.
The benchmark hit an intraday high of $85.05 before settling at $82.07, up 5.6% or $4.33 on the day amid fears of supply disruptions.
Traders cited Iran’s drone attacks on Cyprus bases and potential retaliation against Gulf shipping lanes as key risks keeping prices elevated.
US WTI crude also climbed above $80, reflecting broader market nerves over the Iran conflict spilling into energy routes.
Analysts at JPMorgan now see Brent averaging $82 through Q2, up from earlier forecasts, with a $90 ceiling if Strait of Hormuz flows tighten.
OPEC+ stuck to planned output hikes despite the rally, betting on demand weakness elsewhere.
Bitcoin’s tumultuous ride
Bitcoin dipped below $63,000 over the weekend as US and Israeli strikes on Iran rattled markets, but rebounded to around $67,000 by Tuesday amid stabilizing sentiment.
The crypto leader fell about 4% initially on Saturday, mirroring risk-off moves into gold and the dollar, before climbing back as traders weighed escalation risks.
Ethereum tracked similar patterns, dropping to $1,910 before recovering near $2,000.
Iran’s crypto outflows spiked 700% from its top exchange Nobitex post-strikes, highlighting the blockchain’s role in sanctions evasion.
Over $350 million in crypto liquidations hit amid oil’s surge and inflation fears, with Bitcoin acting more like a risk asset than safe-haven gold.
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