While earnings season is in full swing across the Atlantic, the Middle East crisis has returned to the forefront of the news cycle. The Iranian news agency Fars reported that a US warship approaching the Strait of Hormuz was targeted by two missiles near the port city of Jask, at the entrance to the strait. According to the agency, the vessel allegedly ignored warnings from Iranian authorities before eventually turning back.

While Iran claims to have hit the ship, the report was swiftly denied by US Command, which maintained that no US Navy vessel had been hit and that American forces [...] were enforcing the naval blockade of Iranian ports.

According to Reuters, citing a senior Iranian official, Iran actually fired a warning shot at the US warship to prevent its entry into the Strait of Hormuz.

These skirmishes follow a hardening of rhetoric from the Iranian military command regarding US initiatives to secure passage in this strategic zone. "Any foreign military force, particularly American, would be targeted in the event of an approach or entry into the Strait of Hormuz," General Ali Abdollahi, head of the Khatam al-Anbia Central Headquarters, stated hours earlier via Tasnim News Agency.

VIX and oil on the rise

Reflecting increased market stress, the VIX (dubbed the "fear index") rose 6%, though it remains at a relatively moderate level of 18 points.

Conversely, oil prices are trending higher, with WTI up 1.9% to around $104 per barrel, and Brent up 2.6% to $111.

This surge in oil prices is increasingly weighing on the real economy, as evidenced by the cessation of operations at Spirit Airlines, a US low-cost carrier whose business was crippled by jet fuel costs. Airlines are indeed on the front lines of the oil spike, with one-third of their operating costs tied to fuel purchases.

United Airlines has announced several initiatives for Spirit Airlines customers and employees: for a two-week period, passengers whose flights were canceled can access capped-fare one-way tickets through a dedicated offer.

Stocks to watch

In other news, GE Vernova announced it has secured an order from Megha Engineering & Infrastructures (MEIL) to deliver nine 150 MW pumped storage units for the 1.35 GW Upper Sileru hydroelectric plant in Andhra Pradesh, India.

Accenture has invested in Netomi, a leading AI platform company. This strategic partnership aims to help enterprises reinvent customer experience through agentic AI systems.

GameStop proposed on Sunday to acquire eBay for approximately $56bn in a cash-and-stock deal. CEO Ryan Cohen stated he is prepared to bypass the board by launching a proxy battle if necessary. The offer, set at $125 per share, represents a premium of approximately 20% over Friday's closing price.

Earnings and indicators to monitor

On the earnings front, markets will digest reports today from Palantir, Vertex Pharmaceuticals, and Firefly Aerospace, followed tomorrow by Pfizer and KKR.

Finally, at 4 pm, the release of March factory orders will allow market participants to gauge industrial demand and anticipate the economic trajectory.

In the meantime, the dollar is trading at 0.854 euros (+0.31%).