Global markets fell Tuesday as the Middle East conflict intensified, driving oil prices higher and boosting safe-haven demand.
Iran disrupted shipping through the Strait of Hormuz, a key route for a fifth of the world’s oil and gas trade.
U.S. crude jumped 4.7% to $74.56 per barrel, while Brent rose 4.71% to $81.40, hitting 2024 highs.
Wall Street pared losses, with the Dow down 223 points, S&P 500 off 43, and Nasdaq dropping 151.
European markets fell, the STOXX 600 down 3.08%, while Asia saw steep declines led by South Korea’s KOSPI plunging 7.2%.
The U.S. dollar strengthened against the euro, yen, and sterling, while gold and bitcoin declined amid inflation concerns.
President Trump warned of potential Iranian attacks following stalled nuclear talks, as Israel targeted an Iranian nuclear-linked site.
Rising energy prices complicate Federal Reserve efforts to control inflation, with markets highly sensitive to news and geopolitical developments.
