Wall Street indices experienced sharp declines as geopolitical tensions between the US and Iran escalated, triggering a surge in crude oil prices and a flight to safety in gold and government bonds. The S&P 500 and Dow Jones fell by over 1.5% amid fears of a broader Middle East conflict disrupting oil supplies. Crude oil prices rose to per barrel, while gold climbed to ,920 as investors sought refuge from market volatility. The market reaction highlights the sensitivity of equities to geopolitical risks, particularly in energy-dependent economies. Traders are now pricing in higher inflation and potential central bank policy shifts, with the Federal Reserve's next meeting under scrutiny. The dollar index strengthened against the euro and yen, reflecting safe-haven demand. For global markets, prolonged tensions could lead to sustained oil price volatility and higher input costs for industries. Gulf investors should monitor OPEC+ policy adjustments and regional military developments. Key indicators to watch include weekly EIA oil reports and Fed statements on inflation expectations.

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