Tensions Rise: Global Markets React to Middle East Conflict

The global markets were rattled by escalating tensions in the Middle East, as Iran and Israel exchanged missile strikes following the U.S. postponement of a threat to Iran's power grid. Energy supplies remain a concern with Brent crude prices rebounding. Governments worldwide are responding to the energy shock.

Global markets face turbulence as tensions escalate in the Middle East. The relief was short-lived after the U.S. delayed its threat to bomb Iran's power grid, which initially caused a brief rally.

Following Iran's denial of negotiations and subsequent missile strikes on Israel, risk sentiment worsened. This prompted a rise in Brent crude above $100 per barrel, and U.S. Treasury yields resumed their upward climb.

Worldwide, governments scramble to secure energy supplies. Japan plans to release oil from stockpiles, and South Korea calls for an energy-saving campaign. Meanwhile, temporarily lifted U.S. sanctions have allowed Iranian oil to reach Indian refiners at a premium.

(With inputs from agencies.)