Evening digest: US-Iran war, Nvidia's $4B pivot, Bitcoin's new resistance

Geopolitical tensions and market crosscurrents are colliding as the US-Iran conflict enters a third day, sending oil and gold sharply higher and rattling global equities.

Defense signals suggest a potentially prolonged campaign, while travel disruptions spread across the Middle East.

At the same time, Nvidia is making a multibillion-dollar bet on photonics to power next-generation AI infrastructure.

Meanwhile, Bitcoin and crypto markets are rebounding, testing key resistance levels even as traditional safe-haven assets surge.

US-Iran war far from over

The US war with Iran entered a third day on Monday, with Joint Chiefs Chairman Gen. Dan Caine saying more forces would be sent to the region as casualties rise.

President Donald Trump, appearing publicly for the first time since hostilities began, said the fight is expected to run four to five weeks but could last much longer.

The conflict has disrupted Middle East air travel, resulting in thousands of flight cancellations.

Markets reacted: oil prices jumped on supply-risk fears, gold gained, and equities across Europe and Asia fell.

Defense Secretary Pete Hegseth said Trump has broad discretion over the campaign’s duration.

Nvidia's $4 billion bet on photonic

Nvidia announced Monday it will invest $2 billion each in Lumentum and Coherent to ramp up photonic technologies for next-gen AI data centers.

The deals include multibillion-dollar purchase commitments and support for US-based R&D and manufacturing.

CEO Jensen Huang called the partnerships critical for building "gigawatt-scale AI factories," highlighting photonics' role in moving massive data volumes with less energy than copper cables.

Lumentum shares jumped 7.6% in premarket trading to $75.4, while Coherent gained 7.3% to $77.73.

The move signals Nvidia's push to secure the optics supply chain as AI infrastructure demand explodes, positioning the two suppliers as key players in the AI boom.

US-Iran conflict triggers safe-haven rush

Gold touched $5,400 per ounce on Monday, giving back some gains but holding near record highs as the US-Iran conflict drove a rush into safe-haven assets.

The metal climbed over 4% intraday before paring the move, with JPMorgan analysts expecting a 5-10% "risk premium" boost in the near term from the weekend's US-Israel strikes on Iran and regional retaliation.

They see gold hitting $6,000 by end-2026 on central bank buying and deficits, though equity losses could force some selling if stocks keep tumbling.

Gold's up 23% year-to-date, marking eight straight months of gains.

Bitcoin tests $70K resistance

Bitcoin surged past $68,000 on Monday, testing the $70K resistance level after a sharp liquidation-driven rebound wiped out $450 million in short positions.

The move came as crypto markets shook off weekend Middle East escalation fears, with BTC climbing 4.3% to $68,965 intraday after dipping below $65K early in the session.

Traders piled into longs after overleveraged shorts got squeezed, pushing volume above $88 billion.

Ethereum followed suit, gaining 5.2%.

The bounce reflects crypto's growing decoupling from traditional risk-off flows, while equities sold off and oil spiked, Bitcoin held key support around the 50-day moving average.