With the large-scale military strike launched by the US-Israel joint forces on February 28, 2026, codenamed Operation Judea Shield, the risk appetite in global financial markets has undergone a fundamental shock. Given that this airstrike involved over 500 targets, its unprecedented scale has prompted markets to rapidly shift into an extreme risk-off mode.

The specific performance across various asset classes and market structures is summarized as follows:
In terms of asset market performance, safe-haven assets have shown strong capital inflows. As a traditional store of value, gold (XAU/USD) not only hit a new all-time high but also surpassed the $5,300 per ounce mark, especially in Asian markets where physical gold demand has exploded. Meanwhile, funds are seeking liquidity refuges, pushing up the exchange rates of the US dollar, Japanese yen (JPY), and Swiss franc (CHF). Currently, USD/JPY remains volatile around 156, with market consensus predicting the yen will strengthen further after the market opens on Monday. Additionally, with a large influx of investors into the sovereign bond market, it is expected that government bond yields will plummet sharply on Monday, driving prices higher.
In contrast, risk assets are facing severe correction pressures. Although major stock exchanges were closed over the weekend, futures markets and industry analyses generally warn that panic selling of overvalued tech stocks may occur at the Monday open. In this context, only defense industry stocks and traditional energy stocks are likely to serve as safe havens for capital. The cryptocurrency sector has also suffered heavy losses; Bitcoin (BTC), often called digital gold, failed to maintain its safe-haven status during the early stages of the conflict and instead experienced a flash crash, with prices dropping from a high of $70,000 to the $63,000–$64,000 range, erasing up to $128 billion in market value in a single day.
The energy and commodities sectors are currently highly bullish. Brent crude oil closed at $72.87 on Friday, but following Iran’s announcement of blocking the Strait of Hormuz—responsible for 20% of global oil transportation—the market widely expects oil prices to gap higher on Monday, with short-term target prices potentially surging to $90–$100 or even higher. Besides energy, concerns over supply chain disruptions have also led to bullish expectations for strategic materials such as grains, aluminum, and nickel.
From market sentiment and trading logic, the investment focus has shifted from growth pursuit to survival. The previous narratives supporting the market—such as AI prosperity and a soft landing—have been replaced by war premiums. Investors are sharply reducing risk exposure, withdrawing from non-core, high-volatility assets like cryptocurrencies and small-cap growth stocks, and instead accumulating cash, physical gold, and energy. This liquidity squeeze reflects an extreme defensive mindset. Furthermore, markets have begun pricing in a long-term regional war rather than a short-term conflict, a structural shift that suggests inflation expectations may resurface, potentially disrupting the Federal Reserve’s planned rate cuts.
In summary, the market is on the eve of an extremely tight storm. Investors are now in deep consensus, deeply concerned about hindered global economic growth and broken supply chains. It is expected that when the global stock markets open on March 2, Monday, they will face the most intense sell-off pressure since the government shutdown in 2025.