Iran Fires Missiles at Israel as Middle East Conflict Spurs Oil Surge, Global Stocks Drop

Following Israel's airstrikes on Iran's military and nuclear facilities, the Middle East has seen a sharp escalation in conflict, prompting Iran to retaliate with hundreds of missile launches against Israel. This military escalation has caused global stock markets to fall and oil prices to surge dramatically, with Brent crude rising over 12% and nearing $78 per barrel, signaling the largest weekly gain since 2022. The spike in oil prices has raised concerns about potential supply disruptions through the Strait of Hormuz, a critical route for a significant portion of the world's oil shipments, threatening to further increase inflation and complicate economic recovery. President Donald Trump has urged Iran to accept a nuclear deal to prevent further conflict, while investors have sought safe havens such as gold and the dollar amid increased geopolitical uncertainty. Energy stocks, including oil producers like ExxonMobil and Chevron, have gained, whereas airlines have declined due to anticipated higher fuel costs, and shipping stocks have shown mixed reactions amid concerns about security in the region. Analysts warn that if the conflict expands or persists, crude prices could exceed $100 per barrel, posing a substantial risk to the global economy and inflation outlook.