US-Israel-Iran War Roils Markets

Global financial markets experienced a sharp downturn following the escalation of a conflict involving the United States, Israel, and Iran. This geopolitical event triggered a broad risk-off sentiment across global markets. Indian equity markets, represented by the NIFTY 50 and S&P BSE Sensex, opened significantly lower, with all sectoral indices trading in the red, particularly realty, oil and gas, and auto. Asian markets, including the Nikkei 225, Hang Seng Index, and KOSPI, also saw declines, while the Shanghai Stock Exchange Composite Index and Shenzhen Stock Exchange were less affected. US markets, including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, ended largely in the red in the previous trading session. A major consequence was the more than 7% jump in Petroleum prices, driven by fears of supply disruptions due to the US-Iran war. The heightened uncertainty in the Middle East also led to the suspension of flights across key United Arab Emirates routes, putting pressure on aviation stocks.