Rising Tensions Between Iran and Israel Impact Markets

The recent escalation of conflict in the Middle East, particularly Iran's missile strikes against Israel, has raised concerns over global trade, logistics, and market stability. Industry experts warn that heightened tensions could lead to increased logistics costs, impacting key sectors like oil and agriculture, as well as straining the working capital of exporters due to rising insurance costs. The Federation of Indian Export Organisations noted that disruptions in the Strait of Hormuz could further complicate trade dynamics, affecting oil supply and prices. Meanwhile, investors are shifting to safer assets, with gold and U.S. Treasuries gaining popularity as stock markets face volatility. Oil prices have already risen by approximately 3% amidst fears of supply disruptions, which may have broader implications for inflation and economic growth. Despite these challenges, financial advisors urge investors to remain calm and maintain diversified portfolios to navigate potential market turbulence.