Russia-Ukraine conflict: Drone attacks on Moscow

What happened: On Wednesday, Ukrainian forces launched a large-scale drone attack on Moscow, targeting a key oil refinery. This is the first time the conflict has reached the Russian capital, over 1,200 miles from the Ukrainian border. The attack sent massive plumes of black smoke across the city skyline. In response, Russia threatened escalation, pledging "massive group strikes" against Ukraine.

Market impact: Energy and defense sectors are significantly affected. The attack on the Moscow refinery disrupts Russian oil production, potentially tightening global supply and driving up energy prices. Defense stocks may also see a boost due to increased geopolitical tensions. Companies like ExxonMobil, Shell, and major defense contractors like Lockheed Martin and Raytheon Technologies could be impacted.

What to watch next: The next key catalysts are Russia's response to the attack, which could escalate the conflict, and any retaliation from Ukraine. Additionally, watch for updates on the U.S.-Iran deal, which could impact global oil flows and prices.