Global Tensions Trigger Market Volatility Amid Escalating Conflicts

Global financial markets took a hit Tuesday as rising tensions in the Israel-Iran conflict alarmed investors, prompting fears of an escalating regional crisis. Stocks fell sharply, with S&P 500 futures losing 0.4% and European stocks dropping 0.7%, while crude oil prices climbed by 0.7% to approximately $73 per barrel.

U.S. President Donald Trump called for the evacuation of Tehran and cut short his participation in the Group of Seven summit in Canada, signaling serious concern. A report suggested Trump had the National Security Council on high alert. Investors flocked to safer assets like U.S. Treasuries and gold amid the growing uncertainty.

In monetary policy matters, the Bank of Japan decided to maintain its short-term interest rates at 0.5% while adjusting its bond tapering approach, a move anticipated by markets. This direction by central banks comes as economies worldwide brace for impacts from geopolitical turmoil and trade negotiations under President Trump's volatile tariff strategy.

(With inputs from agencies.)