Global Markets React as Middle East Tensions Escalate

Wall Street extended its losses on Friday following reports of missile launches by Iran targeting Israel. This escalation comes in response to Israeli actions aimed at disabling Iran's nuclear capabilities, signaling a growing conflict in the Middle East that has undercut investor confidence worldwide.

Amid these developments, the S&P 500 fell by 1.30%, closing at 5,966.76 points. The Nasdaq and the Dow Jones also saw declines of 1.44% and 2.02% respectively. The threat of a potential disruption to the critical oil supply routes through the Strait of Hormuz caused oil prices to surge by nearly 7%, benefiting U.S. energy stocks.

Airline companies saw significant losses on fears of rising fuel prices, while defense stocks performed well amidst the conflict. Financial markets are bracing for further developments, with implications for trade agreements and Federal Reserve interest rate policies looming large.

(With inputs from agencies.)