Global markets plunged, and oil prices surged on Tuesday after Iran launched missiles at Israel, raising concerns about a broader regional conflict following nearly a year of war between Israel and Hamas in Gaza.
U.S. and European stocks sharply declined after the missile strikes, which Iran claimed were in retaliation for the recent killings of Tehran-backed terrorist leaders.
Most of the missiles were intercepted by Israeli air defenses or shot down by Israeli forces before reaching their targets. The Israeli military announced about an hour after the attack began that the assault was over.
The market reaction was swift, with major U.S. indices falling, including a 1.5% drop in the tech-heavy Nasdaq. Gold, seen as a safe haven during times of crisis, surged around 1% to a new record high, surpassing $2,600 an ounce due to the mounting tensions.
Earlier in the day, European stocks opened higher as the eurozone’s annual inflation rate slowed, but U.S. shares closed lower as a recent rally lost momentum ahead of key economic reports expected to shed light on future interest rate trends.
Meanwhile, the sentiment worsened further as U.S. dockworkers went on strike at East and Gulf Coast ports, a move that could potentially cost the U.S. economy billions of dollars daily and add more pressure to inflation.
“Investors are keeping a cautious eye on escalating Middle East tensions and the U.S. port strike, while waiting for this week’s crucial jobs and manufacturing data,” said Joe Mazzola, a strategist at Charles Schwab.
