Investors will be watching closely for any updates on US involvement in the Iran-Israel conflict. The release of the Fed's preferred inflation gauge, core PCE, will also be in focus.

With Israel defending itself on at least two fronts, the country's finances and economy are strained. Since the militant islamist group Hamas attacked the Jewish state on October 7, 2023, Israel has been engaged in intense fighting in Gaza.

Iran’s prewar economy was beleaguered, while Israel’s showed signs of recovery. A long conflict will test both their resilience.