Middle East Tensions Shake Global Markets, Drive Oil Surge
Global financial markets took a hit as Israel launched military strikes on Iran. Oil prices surged while stocks declined, driven by rising tensions and the potential geopolitical impact. Investors sought safe havens like gold and the dollar amidst the uncertainty, while global bond markets reacted to the new developments.
Global markets took a hit on Friday as Israel launched military strikes on Iran, pushing oil prices higher and driving investors to safe havens such as gold and the dollar. This escalation in the Middle East adds significant uncertainty to financial markets already strained by U.S. economic policies.
Oil prices soared, with Brent crude up nearly 7% to $74.2, marking the highest one-day jump since 2022. Gold prices also rose, nearing record highs. Major indices across the U.S., Europe, and Asia showed declines, reflecting investor concern over the geopolitical tension.
The situation poses a challenge to investors already grappling with shifts in global economic and trade policies. The impact was also seen in bond markets, where initial demands for U.S. Treasuries shifted focus to potential inflationary pressures from rising oil prices.
(With inputs from agencies.)
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