Geopolitical Tensions Shake Markets: A Financial Rollercoaster

Asian stocks fluctuated amid geopolitical uncertainties and U.S. tariff deadlines. A ceasefire between Israel and Iran calmed oil markets. Trump's potential Fed Chair replacement sparked dollar weakness, impacting global currencies. Financial markets are wary of Trump's trade policies, with central banks cautious about interest rates due to trade and geopolitical risks.

Asian markets wavered on Thursday as geopolitical and fiscal uncertainties loomed, with investors eyeing U.S. tariff deadlines. The euro soared to a 3-1/2-year high, while oil prices stabilized amid a ceasefire between Israel and Iran, reducing global oil trade disruption risks.

The U.S. dollar weakened after reports that President Trump is considering replacing Federal Reserve Chair Jerome Powell. This news pushed the euro to its highest level since November 2021, as investors expressed concerns over the central bank's independence and potential interest rate cuts.

As Trump's trade policy deadlines approached, financial markets remained tense. Fed Chair Powell resumed his congressional testimony, highlighting tariff-driven inflation risks. Meanwhile, oil prices edged higher, with Brent crude at $67.82 a barrel, supported by easing Middle East tensions.

(With inputs from agencies.)