Middle East Tensions Trigger Global Market Turmoil

Wall Street experienced a sharp decline on Friday as escalating tensions in the Middle East rattled investors. Iran launched missile strikes on Israel, retaliating against Israeli efforts to dismantle Tehran's nuclear capabilities. Explosions were reported in Tel Aviv and Jerusalem, raising regional instability.

The conflict has stirred fears of supply disruptions, causing oil prices to spike by nearly 7%. Energy stocks such as Exxon and Diamondback Energy benefitted, while airline stocks declined amid concerns over rising fuel costs. Strategist Elias Haddad warned of potential market impacts if the Strait of Hormuz is affected.

Defense stocks, including Lockheed Martin and Northrop Grumman, gained, reflecting increased military demand. The S&P 500, Nasdaq Composite, and Dow Jones all saw losses, while Oracle hit a record high due to strong AI service demand. Meanwhile, Adobe's slow AI adoption worried investors. Cryptocurrency developments pressured Visa and Mastercard stock as major retailers considered alternatives.

(With inputs from agencies.)