The S&P 500 staged a sharp reversal after retail panic exhausted itself, though Middle East tensions keep volatility high. With oil prices elevated, the dollar and short-term yields remain critical risk indicators alongside Bitcoin.

UK stocks stabilized on Wednesday following a two-day decline driven by escalating tensions in the Middle East.

Oil prices fell as reports suggest Iran is seeking peace terms following heavy military losses. President Trump authorized federal insurance for Gulf maritime trade to secure energy flows, shielding markets from potential supply shocks.

The Iran war has slowed oil exports through the Strait of Hormuz to a crawl, leading to the expected result: a surge in energy prices.