Global Markets Rattled After Israel–Iran Conflict Escalates, Oil Prices Surge 10%

Global financial markets, which had seen modest gains earlier this week on the back of encouraging progress in U.S.–China trade negotiations and signs of cooling inflation, were sharply disrupted following a sudden escalation in Middle East tensions.

The situation intensified after Israel launched a strike on Iran, triggering a wave of risk-off sentiment across global markets. In immediate reaction, oil prices surged by nearly 10%, with Brent crude reaching its highest intraday level in months. The spike in energy prices has reignited concerns over stagflation, especially as inflation remains a key concern in many developed economies.



Global equity indices, which had been buoyed by optimism around reduced trade barriers and improving U.S. consumer confidence, fell sharply, with sectors like aviation, logistics, and energy-intensive industries leading the decline.

Analysts warn that if tensions persist, investors may continue shifting toward safe-haven assets such as gold, U.S. Treasuries, and the Swiss franc.

While diplomatic efforts are ongoing behind the scenes, the incident has once again underlined the fragility of the global economic recovery and the significant impact geopolitical events can have on markets.

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