Israel-Iran Conflict Escalation Pushes Global Oil Prices Higher

The escalating conflict between Israel and Iran is significantly impacting global markets, particularly crude oil prices, which have surged over 7% amid concerns about supply disruptions. Investors worldwide are approaching the week with caution as geopolitical tensions overshadow other developments, including progress in US-China trade talks and upcoming central bank meetings. The U.S. Federal Reserve's June 17-18 meeting is a key focus, with expectations to keep interest rates steady despite President Trump's calls for sharp cuts, while traders watch for any shifts in policy amid inflation uncertainties linked to tariffs. Market reactions have included declines in major indices like India's Sensex and Nifty, reflecting volatility and investor worries over the conflict and its economic ramifications. Additionally, rising oil prices are expected to benefit oil exploration and defense sectors, with potential increased defense spending and export orders due to the military escalation. Overall, the interplay between Middle East tensions, central bank policies, and economic data releases is set to dominate investor sentiment and market movements in the near term.