Middle East Tensions and Strikes Rattle Global Markets

Tensions in the Middle East are escalating as Iran launched missiles at Israel, sparking fears of a broader regional conflict involving Tehran-backed militants in Gaza and Lebanon. This has led to a rise in oil prices, with Brent crude reaching nearly $75 per barrel, amid concerns about potential disruptions to oil supplies from the region. Global markets have reacted with a downturn; US and European stocks have fallen, and gold prices have surged as investors seek safe-haven assets. The geopolitical risk has overshadowed positive economic indicators, such as anticipated interest rate cuts and oil production shifts, which had previously buoyed investor sentiment. Additionally, a US dockworkers' strike has compounded market anxieties, potentially impacting the economy further. Wall Street's fear gauge remains moderate, but concerns about growth and inflation persist as investors brace for Israel's retaliation and monitor upcoming US economic data releases.