Global financial markets reopened Monday with sharper risk pricing across asset classes as traders absorbed a weekend of continued strikes, deepening humanitarian developments, and recalibrated assumptions about how long the Iran conflict will persist.

Currency markets reflected the shift most visibly. Safe-haven currencies opened firmer against a broad basket, while currencies of states heavily exposed to oil-import bills or regional trade weakened. Volatility measures rose across the board, though they remained below levels seen during past acute crises.

Equity benchmarks opened mixed. Energy sector indexes extended gains from the prior week, while transportation, consumer discretionary, and travel-related stocks lagged. Defense and cybersecurity names continued to find buyers.

Sovereign bond markets showed flight-to-quality flows in the largest issuers, while spreads widened modestly on emerging market debt for countries with elevated exposure to energy imports or regional trade. Credit derivatives markets reflected a similar pattern, with single-name spreads moving more than broad index measures.

Traders described the day’s pricing as a shift from “headline reaction” to “duration reaction.” The change in mindset, they said, was the more consequential of the two adjustments because it altered the curves used to price options and forward exposures over horizons of months rather than days.

Several large institutional investors have reportedly adjusted portfolio mandates to allow greater flexibility on energy and defense allocations. Risk committees have called weekend sessions in recent days to review exposures that had been considered settled before the conflict began.

Central bank officials in major economies have signaled patience on policy responses, noting that energy price effects are still working through. Several have privately acknowledged that sustained elevated prices would eventually feed into headline inflation in ways that complicate the path of policy.

Whether Monday’s repricing holds will depend on the trajectory of the conflict and on how cleanly companies report exposure in upcoming earnings updates. Both factors are now central to how positions are being managed.