Introduction
The recent developments in the Middle Eastern conflict have caused significant turbulence in international financial markets. The financial world reacted sensitively to an Israeli airstrike on Iranian nuclear facilities, resulting in a global rise in oil prices and a decline in stock prices.
Market Reactions
In Asia, key indices recorded noticeable losses: the Japanese Nikkei fell by 1.3%, the South Korean Kospi by 1.1%, and the Hang Seng in Hong Kong by 0.8%. European and US markets were also not spared. Futures on the S&P 500 and Nasdaq futures dropped by 1.7% and 1.8%, respectively, while European STOXX-50 futures declined by 1.6%.
Impact and Recovery
The environment of uncertainty led to increased risk aversion, particularly in commodity-dependent and globally operating companies. The initial distancing of the USA from the attack did not help calm the markets. Nevertheless, signs of recovery are beginning to emerge: the Nikkei rose by 1.3% the following day, supported by a weaker yen and diplomatic efforts.
Long-term Risks
Despite temporary stabilization, geopolitical uncertainties remain high. Analysts warn that tensions in the Middle East continue to pose risks to the global markets, particularly in combination with other challenges such as trade policy and upcoming interest rate decisions.
Conclusion
These events illustrate how sensitively the global financial markets react to geopolitical crises, which immediately affect commodity prices and stock prices.