Security sources reported that Katyusha rockets targeted the US embassy in Baghdad, marking a significant escalation in regional tensions. The attack occurred amid heightened geopolitical uncertainty, with the US and Iraqi authorities investigating the incident. The US has not yet commented publicly on the attack but has previously warned of retaliatory measures against such actions. The incident raises concerns about regional stability and potential spillover effects into global markets. This event could impact commodity markets, particularly oil prices, due to Iraq's strategic role in global energy supply. US equities may also face volatility as investors assess risks related to military escalation or sanctions. Geopolitical tensions often drive safe-haven assets like gold, which could see increased demand. Traders should monitor statements from the US and Iraqi governments for further clarity on the situation. For MENA investors, the attack underscores the fragility of regional security and its economic implications. Oil prices may fluctuate based on production disruptions or supply chain concerns. Gulf markets could experience mixed reactions depending on the duration of the crisis. Key indicators to watch include OPEC+ policy adjustments, US-Iraq diplomatic developments, and shifts in global risk appetite.

Read full article from source ↗