Trump rejected Iran’s response to the peace proposal, calling it “TOTALLY UNACCEPTABLE” in a post on Truth Social, which triggered a widespread sell-off in the markets. Oil prices opened the week significantly higher in response to the US–Iran diplomatic deadlock, whilst the US dollar strengthened, thereby pushing gold and other precious metals lower. Amid shifting market sentiment, the major indices also saw their upward momentum stall.
The key question now is "What next?". Investors will once again be focusing their attention on the geopolitical landscape, as this is likely to remain the main driver of market volatility. It is also worth keeping an eye on:
-
The main risk factor is the further development of US–Iran diplomatic relations — any sign of escalation (e.g. confirmation of military action against nuclear facilities) could send oil prices soaring and weaken equities. Tuesday will see a meeting of 40 defence ministers on the Strait of Hormuz — it is worth keeping an eye on the statements.
-
US CPI data and retail sales this week will shape the narrative surrounding the Fed; PIMCO is already signalling that rate cuts are off the table.
-
The Trump–Xi summit (13–15 May) — a potential game-changer for trade, sanctions and the situation in Iran; markets will be positioning themselves in advance.
-
European markets likely to open under pressure: higher energy prices, weaker global sentiment, geopolitical tensions — a negative backdrop for the DAX, CAC and Euro Stoxx 50
A detailed macroeconomic calendar for the whole week. Source: XTB Research, Bloomberg Financial Lp
A detailed corporate calendar for the whole week. Source: XTB Research, Bloomberg Financial Lp
Morning Wrap: Iran's peace proposal “UNACCEPTABLE”; markets take a hit ❗💥
Daily Summary: Technology Drives Wall Street to Record Highs Despite Tensions in the Persian Gulf
🔴 Three markets to watch next week: EURUSD, CH50cash, OIL (08.05.2026)
US Open: Earnings season and strong NFP report drive Wall Street higher!
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
