Next Week's Highlights: Houthi Forces Join the US-Israel-Iran Conflict; Powell Appears in Harvard Economics Class

As the first quarter of 2026 is about to conclude, the world is moving further into deeper chaos.

As of the time of writing, the anticipated ceasefire in the Middle East remains elusive for global investors. Israel’s airstrikes against Iran continue unabated, and Iran has retaliated against multiple targets in Israel and Gulf countries. Aluminum plants in the UAE and Bahrain have reported losses, and a massive fire has erupted at Kuwait International Airport.

Meanwhile, the U.S. Marine Corps expeditionary forces that have traveled from the Asia-Pacific region have confirmed their arrival in the Middle East waters. The U.S. Central Command stated that, in addition to approximately 2,500 Marines, this task force will also transport fighter jets and amphibious assault forces to the region.

A larger variable is that the Houthi forces in Yemen officially joined the conflict this weekend, which has been ongoing for a whole month. According to the group’s spokesperson Yahya, they have already launched strikes against Israel using “cruise missiles and drones” and “will continue military operations in the coming days.”

This marks the first attack by the Houthi forces against Israel since the ceasefire agreement between Israel and Hamas last October. The organization has not yet clearly stated whether it will expand its targets to include oil tankers passing through the southern Red Sea and the Bab-el-Mandeb Strait. Currently, Saudi Arabia is transporting crude oil to Yanbu Port through east-west pipelines at full capacity, making this port a strategic location for stabilizing global oil prices.

(This satellite image taken by Planet Labs PBC shows the oil infrastructure at Yanbu, a Red Sea port in western Saudi Arabia.)

In the latest research report from the political risk consulting firm Eurasia Group, analysts pointed out that given the ceasefire agreement between the Houthis and Saudi Arabia, which has largely been observed so far, the group may avoid attacking Saudi oil facilities to maintain their tacit understanding with Saudi Arabia. However, in the event of further escalation, Saudi oil exports remain within the range of Houthi forces.

Since the conflict began, Brent crude oil has risen by nearly 50%, while the S&P 500 index has lost all integer points between 6900 and 6400. Considering that the European and American markets will enter the Easter holiday next weekend, if the situation in the Middle East does not improve, investors will face the dilemma of whether to “hold stocks over the holiday.”

In addition to the ongoing Middle Eastern war that continues to affect market sentiment, some economic data next week may attract market attention. Among them, a complete set of employment data from the U.S. (Tuesday’s JOLTS job openings, Wednesday’s ADP “non-farm payroll,” and Friday’s non-farm employment report) will provide a snapshot of the country’s labor market amid soaring energy prices.

Economists currently expect that March’s non-farm payrolls will add 56,000 jobs, and the unemployment rate will remain at 4.4%. As the capital markets have begun to price in interest rate hikes by the Federal Reserve, if non-farm employment continues to cool, it will exacerbate the policymakers’ concerns in the U.S.

(The U.S. non-farm payrolls unexpectedly decreased by 92,000 in February, source: tradingeconomics.)

According to the Federal Reserve’s schedule, Chairman Powell will appear in a discussion class at Harvard University on Monday after the market opens.

(Source: Federal Reserve)

The Eurozone and several European countries will also disclose the preliminary value of March CPI next week, showcasing the initial impact of soaring energy prices.

On the individual stock front, there are still two weeks until the new round of U.S. earnings season, so only a few well-known companies like Nike, Bawang Chaji, and Weimaitai will disclose their performance during this period. As one of the recent “AI victim stocks,” the financial data platform FactSet will release its earnings report after the market closes on Tuesday.

As is customary in early April, automakers like Tesla will also announce first-quarter delivery data next week. In the “sell-side analyst forecast compilation” released on Thursday, Tesla has already revised its delivery expectations for 2026 down to 1.689 million, compared to the 1.75 million expectation reported in the fourth quarter of last year.

Next week also marks the 55th anniversary of Starbucks and the 50th anniversary of Apple, and both companies will hold celebratory events.

Overview of important financial events next week (Beijing time)

Monday (March 30): Fed Chairman Powell attends a public discussion at Harvard University, G7 finance ministers/energy ministers/central bank governors meet, Eurozone March Economic Sentiment Index, Bank of Japan releases summary of opinions from March monetary policy meeting.

Tuesday (March 31): China’s March official manufacturing PMI, Eurozone March preliminary CPI, U.S. February JOLTs job openings.

Wednesday (April 1): U.S. March ADP employment figures, U.S. February retail sales month-on-month, Eurozone March manufacturing PMI final value.

Thursday (April 2): U.S. February trade balance, European Central Bank releases economic bulletin.

Friday (April 3): U.S. March non-farm employment report, European and American exchanges closed for Good Friday.

(Source: Financial Associated Press)