Geopolitical Tensions Rattle Global Markets

Investors' hopes for a swift resolution to the Israel-Iran tensions were dashed as the long-standing adversaries continued their hostilities, and President Trump urged Iranians to vacate Tehran. This escalation rattled global markets, with European markets poised to open in significant negative territory, as indicated by futures.

Oil prices in Asian trading surged nearly 2%, contributing to a 7.5% increase since the conflict began. While U.S. futures also experienced declines, currencies remained relatively stable, with the U.S. dollar maintaining its position as a safe haven. The possibility of U.S. involvement in the conflict remains a concern for the global markets.

Despite geopolitical uncertainties, investors are looking ahead to central bank meetings, particularly focusing on the Bank of Japan's decision to taper bond purchases. The cautious pace in altering monetary policy reflects challenges in moving past a decade of economic stimulus.

(With inputs from agencies.)