Global uncertainty rises as conflict escalation rattles investors
Dubai/Cairo: Hopes for a swift resolution to the Middle East conflict weakened after Donald Trump pledged more aggressive military action against Iran. In a prime-time address, he said US operations would intensify over the next two to three weeks, offering no clear timeline for ending hostilities. Consequently, global markets reacted sharply, with stocks falling, oil prices surging, and the dollar strengthening.
Moreover, Brent crude jumped about 6% to over $107 per barrel, reflecting concerns over disrupted energy supplies. Investors remained particularly focused on the Strait of Hormuz, where ongoing tensions have restricted flows of oil and liquefied natural gas. Analysts noted that the lack of reassurance on reopening the route added to market anxiety.
Meanwhile, equities declined worldwide. US futures dropped 1.3%, European markets fell over 2%, and major Asian indices also posted losses. Market participants continued to question when the conflict might end.
Military warnings intensify as diplomatic prospects remain uncertain
In response, Iranian forces warned of broader and more destructive attacks if hostilities persist. Regional tensions escalated further as missiles and drones targeted areas across the Middle East, while US officials urged citizens to leave high-risk zones such as Baghdad.
Furthermore, international institutions including the International Monetary Fund and World Bank cautioned that the conflict carries significant global economic risks. They signaled readiness to coordinate financial support for affected countries.
Despite ongoing backchannel contacts, prospects for a near-term ceasefire remain unclear. Trump indicated openness to negotiations but insisted Iran must first ease its blockade of critical shipping routes.
As a result, uncertainty continues to dominate both geopolitical calculations and financial markets worldwide.
