The mood remains tied to developments in the West Asia war. US President Donald Trump has warned of possible strikes on Iran if the Strait of Hormuz is not reopened by Tuesday, keeping markets sensitive to further escalation. The situation over the weekend has already added to uncertainty, particularly around energy supply routes.
At the same time, early signs of diplomacy have offered some relief. The US and Iran are reportedly exploring multiple proposals, including a potential 45-day ceasefire. Another plan, backed by regional mediators, involves an immediate ceasefire along with reopening the Strait.
Oil markets, meanwhile, remain volatile. US West Texas Intermediate crude was trading above $112 per barrel, up around 0.8%, while Brent crude surge 0.1% to above $109 per barrel.
After the Good Friday market holiday, Monday marks the first full trading session for investors to assess the March jobs report. The data came in stronger than expected, with the US economy adding 178,000 jobs while the unemployment rate fell to 4.3%.
The focus now shifts to incoming data and earnings.
Key US inflation numbers are due later this week, while Delta is set to report earnings on Wednesday, offering an early read on corporate performance.
Trading volumes may remain muted, with markets in several countries, including the UK, Germany, France, and Australia, closed for Easter Monday.
Geopolitical cues and crude price movements are likely to remain the key drivers in the near term, with any escalation or breakthrough expected to move markets quickly.
(Edited by : Ajay Vaishnav)
First Published: Apr 6, 2026 7:26 PM IST
