Could this be a 'buy on the rumour sell on the news' situation? The markets seem to think there will be a short war with a positive outcome. I can't help feeling that if Saddam does have the weapons the US claims, he is most likely to use them on US troops. I think this might not be as easy as the last Gulf war.
The price of oil has fallen dramatically in the last few days. If the war drags out, it could re-trace this fall. That would be one way that the markets could see new lows.