Global financial markets fell sharply as Iran expanded retaliatory attacks across the Persian Gulf region and officials in the United States and Israel indicated that military strikes could continue for weeks. Investors reacted to the escalating conflict by selling stocks and bonds while moving funds into perceived safe havens such as the dollar. Analysts warned that a prolonged war could weigh heavily on global trade by raising energy costs, disrupting logistics, and undermining economic confidence.

Energy markets were particularly volatile amid fears of disruptions along the Strait of Hormuz, a vital route for global oil and gas shipments. Brent crude prices surged more than 6 percent to their highest level since mid-2024. Natural gas prices also spiked, with European futures roughly doubling over two days and Asian prices jumping sharply after Qatar halted gas production following attacks on its facilities.

Stock markets across Asia and Europe posted steep losses, with major indexes in South Korea, Japan, and across Europe declining significantly. Futures signaled a sharp drop for United States markets as well. Meanwhile, government bond yields rose worldwide as investors anticipated that higher energy prices could fuel inflation and potentially lead to higher interest rates, increasing costs for consumers and businesses alike.