{"id":60487,"date":"2026-04-02T22:38:30","date_gmt":"2026-04-03T02:38:30","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/"},"modified":"2026-04-02T22:38:30","modified_gmt":"2026-04-03T02:38:30","slug":"global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/","title":{"rendered":"Global Markets Shaken by Israel-Iran Escalation as Brent Tops $109; Microsoft Pledges $10B to Japan AI Infrastructure"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#Geopolitical_Escalation_Drives_Energy_Volatility\" >Geopolitical Escalation Drives Energy Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#Microsofts_10_Billion_Bet_on_Japan\" >Microsoft\u2019s $10 Billion Bet on Japan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#China_Economic_Momentum_Cools\" >China Economic Momentum Cools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#Tech_and_Startup_Developments\" >Tech and Startup Developments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-shaken-by-israel-iran-escalation-as-brent-tops-109-microsoft-pledges-10b-to-japan-ai-infrastructure\/60487\/#Defense_and_Currency_Outlook\" >Defense and Currency Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Brent crude surged past $109 per barrel<\/strong> following a new wave of Israeli strikes on Iranian targets, including an ammunition site in <strong>Isfahan<\/strong>, as the closure of the <strong>Strait of Hormuz<\/strong> severely disrupts global energy supply chains.<\/li>\n<li><strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> announced a massive <strong>$10 billion investment<\/strong> in Japanese data centers and infrastructure through 2029, a major expansion aimed at bolstering AI capabilities and digital sovereignty in the region.<\/li>\n<li><strong>China\u2019s services sector growth slowed significantly<\/strong> in March, with the <strong>Caixin Services PMI dropping to 52.1<\/strong> from 56.7, missing economist estimates of 53.6 as geopolitical tensions and rising input costs weigh on the private sector.<\/li>\n<li><strong>Supabase<\/strong>, the open-source database startup, is reportedly in talks to raise <strong>$500 million<\/strong> at a <strong>$10 billion valuation<\/strong>, effectively doubling its previous market cap as demand for AI-integrated backend tools surges.<\/li>\n<li><strong>South Korea<\/strong> has moved to exempt additional shipping costs from import tariffs to mitigate the financial impact of rerouting vessels around the blocked <strong>Strait of Hormuz<\/strong>.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Escalation_Drives_Energy_Volatility\"><\/span>Geopolitical Escalation Drives Energy Volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Geopolitical tensions reached a fever pitch on Friday as <strong>Israel<\/strong> launched a new series of strikes against <strong>Iran<\/strong>, with explosions reported near a strategic ammunition storage facility in <strong>Isfahan<\/strong>. The escalation has sent <strong>Brent crude<\/strong> prices climbing above <strong>$109 per barrel<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> jumped to over <strong>$112<\/strong>. Markets are pricing in a prolonged disruption of the <strong>Strait of Hormuz<\/strong>, which remains effectively closed to most commercial traffic, prompting <strong>Iran<\/strong> to propose an unprecedented <strong>$2 million-per-vessel transit toll<\/strong> for ships attempting to pass.<\/p>\n<p>In response to the maritime blockade, the <strong>South Korean<\/strong> finance ministry announced it will exempt rerouted shipping costs from import tariffs. This emergency measure aims to protect domestic industries from the &quot;triple squeeze&quot; of rising energy costs, currency depreciation, and logistics delays. Meanwhile, authorities in <strong>Kuwait<\/strong> moved quickly to debunk rumors of radiation leakage following the regional strikes, assuring the public that the situation remains under control.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Microsofts_10_Billion_Bet_on_Japan\"><\/span>Microsoft\u2019s $10 Billion Bet on Japan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> is significantly deepening its commitment to the Japanese market with a plan to inject <strong>$10 billion<\/strong> into data centers and infrastructure projects by 2029. This investment, reported by <em>Nikkei<\/em>, represents a substantial increase from previous commitments and focuses on providing the high-performance computing power necessary for the next generation of <strong>Artificial Intelligence<\/strong>. The move is seen as a strategic effort to align with Japan&#39;s national security goals regarding data sovereignty and to support the country&#39;s aging workforce through AI-driven productivity gains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"China_Economic_Momentum_Cools\"><\/span>China Economic Momentum Cools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Economic data from <strong>China<\/strong> provided a sobering outlook as the <strong>Caixin Services PMI<\/strong> for March fell to <strong>52.1<\/strong>, down sharply from the <strong>56.7<\/strong> recorded in February. While the figure remains in expansion territory (above 50), the pace of growth has moderated more than anticipated. Analysts at <strong>RatingDog<\/strong> noted that while service activity continues to grow, &quot;imported inflation&quot; from rising global oil prices and supply chain deterioration is beginning to squeeze margins for private enterprises.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_and_Startup_Developments\"><\/span>Tech and Startup Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the venture capital space, the database startup <strong>Supabase<\/strong> is reportedly seeking to raise <strong>$500 million<\/strong> in a new funding round. According to <em>The Information<\/em>, the round would value the company at <strong>$10 billion<\/strong>, a twofold increase from its valuation just six months ago. <strong>Supabase<\/strong>, which competes with <strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong>&#39;s Firebase, has seen rapid adoption among developers building AI-powered &quot;vibe coding&quot; applications that require scalable, open-source backend solutions.<\/p>\n<p>In the automotive sector, <strong>Leapmotor (<a href=\"\/stock\/9863.HK\">9863.HK<\/a>)<\/strong> is accelerating its international expansion. The Chinese EV maker has opened a new R&amp;D hub in <strong>Munich<\/strong> and is in early-stage talks with partner <strong>Stellantis (<a href=\"\/stock\/STLA\">STLA<\/a>)<\/strong> to utilize an idle assembly plant in <strong>Brampton, Ontario<\/strong>. This potential Canadian venture would mark a significant shift in North American EV manufacturing, taking advantage of newly lowered trade barriers between <strong>Ottawa<\/strong> and <strong>Beijing<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_and_Currency_Outlook\"><\/span>Defense and Currency Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>France<\/strong> is preparing for a massive increase in missile production as part of a new defense push. Internal documents suggest the country plans to spend <strong>\u20ac8.5 billion<\/strong> to replenish ammunition stockpiles and expand its nuclear arsenal by 2030, citing the need for &quot;strategic autonomy&quot; amid shifting U.S. security priorities.<\/p>\n<p>On the currency front, the <strong>U.S. Dollar<\/strong> is showing continued strength, with analysts at the <strong>Wall Street Journal<\/strong> warning that the <strong>USD\/JPY<\/strong> pair could hit the <strong>160<\/strong> level during thin holiday trading. The <strong>Yen<\/strong> remains under intense pressure as the interest rate differential between the <strong>U.S.<\/strong> and <strong>Japan<\/strong> persists, despite repeated verbal warnings from Japanese finance officials regarding market volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent crude surged past $109 per barrel following a new wave of Israeli strikes on Iranian targets, including 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