Global stock markets plummeted on Friday as rising geopolitical tensions between Israel and Iran triggered widespread investor panic. The sharp sell-off came after reports confirmed that Israel had launched targeted military strikes on Iranian nuclear and missile sites, prompting Iran to threaten retaliation.
In Asia, major indices closed in the red. Japan’s Nikkei 225 dropped 0.9%, South Korea’s Kospi slid 0.8%, and China’s Shanghai Composite fell 0.7%. Hong Kong’s Hang Seng and Singapore’s Straits Times Index also ended lower. European markets mirrored the downturn, with Germany’s DAX losing over 1.2%, France’s CAC 40 falling 0.9%, and London’s FTSE 100 down 0.23% in intraday trading.
The heightened tension has sparked concerns over oil supply disruptions, especially through the Strait of Hormuz. Brent crude prices surged nearly 3%, crossing the $90 per barrel mark. Gold also saw increased demand, rising over 2% as investors fled to safe-haven assets.
Financial analysts warn that the situation could worsen if the conflict escalates further. “Markets are reacting not just to current events, but to the unknowns of what may follow,” said global strategist Arvind Saxena.
As diplomatic efforts intensify, markets remain volatile with no clear end in sight.
Asian Markets in Deep Red
Investor panic rippled through Asian trading floors. Key indices across the region registered significant losses:
- Japan’s Nikkei 225 dropped by 0.9%, reflecting caution among exporters and defense-linked companies.
- South Korea’s Kospi index fell 0.8%, with technology and automobile sectors bearing the brunt.
- China’s Shanghai Composite slid over 0.7%, as foreign outflows increased.
- Hong Kong’s Hang Seng index dipped nearly 0.6%, dragged down by property and financial shares.
- Singapore’s Straits Times index ended the day down 0.2%, marking its lowest close in three weeks.
Market analysts attributed the losses to a combination of geopolitical risks and a “flight to safety” as investors moved capital to safer assets like gold, U.S. Treasury bonds, and the dollar.
European Markets Also Hit
As trading opened in Europe, the negative sentiment spilled over:
- Germany’s DAX index fell more than 1.2%, pulled down by auto stocks and energy-sensitive sectors.
- France’s CAC 40 declined over 0.9%, with banks and defense firms hit by selling pressure.
- London’s FTSE 100 was down 0.23% in intraday trade, though gains in oil majors limited deeper losses.
Traders in Europe are closely watching developments in the Middle East, given the continent’s reliance on imported oil and gas. Any sustained rise in crude prices could further stoke inflation concerns.
Oil Prices Surge, Safe-Haven Assets Gain
Brent crude oil prices jumped by nearly 3%, crossing the $90 per barrel mark, amid worries of supply chain disruptions. Simultaneously, gold prices rose over 2% to a three-month high, as risk-averse investors flocked to traditional safe havens.
