Stock markets worldwide faced significant pressure on Thursday as escalating geopolitical tensions in the Middle East sent shockwaves through financial markets. The S&P 500 fell 1.5%, while European indices like the FTSE 100 (^FTSE) and DAX (^GDAXI) dropped over 2%. Meanwhile, Brent crude oil surged 5% to $92 per barrel, its highest level since late 2024, on fears of supply disruptions.
The sell-off was triggered by reports of an Israeli airstrike in Iran, raising concerns about a broader regional conflict. Safe-haven assets rallied, with gold prices jumping 3% to $2,450 per ounce and the U.S. dollar strengthening against major currencies.
Analysts warn that prolonged instability could delay Fed rate cuts, as energy-driven inflation may resurge. “Markets hate uncertainty, and right now, geopolitical risks are dominating sentiment,” said Jane Doe, Chief Strategist at XYZ Capital.
Key Takeaways:
- Global stocks tumble as Middle East tensions escalate.
- Oil prices spike, raising inflation concerns.
- Defensive assets (gold, bonds, USD) gain amid risk-off sentiment.
