The escalating US-Iran conflict has sent shockwaves through global financial markets. The United States launched a third consecutive night of airstrikes on Iran, targeting military facilities. Iran retaliated by striking US bases in Kuwait, Bahrain, Jordan, Oman and Qatar with missiles and drones. The Strait of Hormuz, through which 20% of global oil passes, has become the flashpoint. Oil prices surged with Brent crude reaching $78.14 per barrel. Safe haven currencies strengthened while risk assets sold off. The dollar index rose above 105.50. Gold jumped to $2,385. The yen and Swiss franc also gained. Emerging market currencies were under pressure.
Global Market Impact
The crisis has triggered a broad risk-off move across asset classes. Traders are monitoring the Strait of Hormuz passage status closely. Any disruption to oil flows through this critical chokepoint would have severe consequences for global energy markets and inflation. Central banks face renewed uncertainty as oil-driven inflation complicates their policy decisions. Investors should maintain defensive positioning and increase safe haven allocation until the situation becomes clearer.