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The US has launched new military strikes against Iran, described by Central Command as 'self-defense strikes' in response to what it calls 'continued and unjustified aggression' by Iran. The operations, ordered by President Trump, targeted multiple sites in Iran for the second consecutive night, following warnings of a 'very strong attack' over Iran's failure to reach a peace agreement. Iranian media reported explosions in several areas, while the Iranian military stated it would respond with a 'strong and painful' reaction to any US actions.
This escalation in US-Iran tensions is likely to heighten global market volatility, particularly in the Middle East. Traders may see increased risk-off sentiment, with potential impacts on oil prices, regional equities, and the US dollar. Geopolitical uncertainty often drives safe-haven assets like gold and government bonds, while equity markets could face short-term sell-offs.
For markets, the focus will shift to how regional allies like Saudi Arabia respond and whether the conflict escalates further. Investors should monitor oil price movements, central bank interventions, and statements from key stakeholders. The situation could also influence USD liquidity and Middle East-focused equities in the coming days.
