U.S. Strikes on Iran Rattle Global Markets

U.S. strikes on Iran spark a global sell-off in markets, pushing oil prices higher amid rising geopolitical tensions worldwide.

U.S. Strikes on Iran Send Markets Into Retreat

U.S. stock futures fell sharply on Wednesday night after American forces launched additional military strikes against Iran, stoking fears of a broader regional conflict. Futures tied to the S&P 500 declined 0.4%, Nasdaq 100 futures dropped 0.6%, and Dow Jones Industrial Average futures shed 123 points, equivalent to a 0.3% loss.

The selling pressure extended into Asian trading on Thursday. South Korea’s Kospi led regional declines with a steep 4.1% drop, while Japan’s Nikkei 225 fell 2.3% and Australia’s S&P/ASX 200 slipped close to 1%. The broader mood across the region remained cautious as investors weighed the implications of escalating Middle East tensions.

Oracle Adds to Technology Sector Pressure

Technology stocks faced compounded headwinds after Oracle announced plans to raise $20 billion through a combination of equity and debt offerings, targeting expansion in artificial intelligence infrastructure. The announcement sent Oracle shares tumbling more than 11% in after-hours trading, dragging broader sentiment across the technology sector lower.

So, the weakness in tech added to an already difficult session on Wall Street. The Dow Jones Industrial Average dropped 953 points during regular trading on Wednesday. At the same time, the S&P 500 lost 1.6%, and the Nasdaq Composite declined close to 2%, with chip stocks bearing a significant share of the losses.

U.S. Strikes on Iran Rattle Global Markets

Oil Prices Climb as Geopolitical Risk Escalates

Oil markets responded swiftly to the military developments. U.S. Central Command characterized the strikes as self-defense operations conducted under President Donald Trump’s direction. West Texas Intermediate crude climbed nearly 3% to approximately $92 per barrel, while Brent crude also pushed higher, reflecting the market’s sensitivity to supply disruptions in the region.

Gold traded at $4,093.85, down 0.96%, while silver fell 1.67% to $63.64. Furthermore, U.S. 10-year Treasury yields held at 4.552, with UK gilts at 4.940 and German bunds at 3.069, as bond markets absorbed the risk-off shift in sentiment.

Investors Eye Inflation Data for Direction

Attention now turns to key U.S. economic releases due Thursday. Investors will monitor the producer price index and weekly jobless claims figures closely for fresh signals on inflation and the overall health of the American economy. Core CPI month-over-month data came in at 0.2%, slightly below the 0.3% consensus estimate, offering a modest point of relief amid the broader market turbulence.

The USD Core PPI month-over-month reading is scheduled for release at 12:30 PM GMT and is expected to draw significant attention given the current inflationary backdrop.

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