ChainThink report, March 21: Escalating Middle East tensions compounded by a sudden surge in Federal Reserve rate hike expectations have triggered systemic shocks across global markets. U.S. equities declined for the fourth consecutive week, marking the longest losing streak in one year, with the Nasdaq dropping over 2% in a single day and tech stocks under broad pressure; global bond yields surged dramatically, with U.S., UK, and German government bonds all hitting multi-year highs, as capital flows rapidly unwound leverage.

Commodities exhibited extreme divergence: gold fell below the $4,500 threshold, plunging over 10% in a week—the worst weekly drop since 1983—undermining its safe-haven status; meanwhile, crude oil spiked due to Middle East supply risks, with Brent crude rebounding above $110 per barrel, and Dubai crude futures surging over 16% in a single session. At the same time, Bitcoin found support near $70,000 and outperformed gold for three consecutive weeks.

Market analysts argue that geopolitical conflict is driving up energy prices and intensifying inflation expectations, forcing a re-pricing of monetary policy trajectories, resulting in a rapid tightening of global financial conditions, and leaving risk assets still in a downward trajectory and undergoing structural repricing.