Tensions Escalate as Markets React to Middle East Conflict and Central Bank Decisions

Global financial markets were shaken as ongoing tensions between Israel and Iran entered their fifth day, contributing to investor anxiety. U.S. stocks dropped, while oil and gold prices surged, signaling fears of a wider Middle East conflict. President Trump, cutting short his G7 summit visit, urged evacuations from Tehran.

The uncertain climate was exacerbated by a series of key central bank meetings. The Bank of Japan kicked off the roster, leaving its short-term interest rate unchanged. Meanwhile, U.S. S&P 500 futures saw initial declines and crude climbed, reflecting broader market volatility as stakeholders await further decisions from major banks.

Amidst the geopolitical and economic turbulence, typical safe-haven assets like U.S. Treasuries saw increased demand, pushing yields lower. Investors are closely watching the outcomes of central bank meetings, with attention on the Federal Reserve's actions amidst global trade tensions and potential policy shifts.

(With inputs from agencies.)