Shares Fall Globally Over Iran-Israel Escalation/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Global equity markets declined Thursday as escalating Israel-Iran tensions rattled investors. With central banks pausing rate cuts and oil prices fluctuating, market uncertainty sharpened. Asian, European, and U.S. futures fell amid concerns about geopolitical instability and trade policy risks.
Market Reaction Snapshot + Quick Looks:
- Europe’s key indices: CAC –0.8%, DAX –0.9%, FTSE –0.5%
- S&P 500 and Dow futures down ~0.4%
- Asia: Nikkei –1.0%, Hang Seng –2.0%, Shanghai –0.8%
- Oil prices edge higher: Brent ~$76.77, U.S. crude ~$73.63
- U.S. dollar strengthens; euro eases to $1.1476
- Central banks hold rates; Fed signals two rate cuts ahead
- Rising oil and tariffs worry markets over inflation risks
Shares Fall Globally Over Iran-Israel Escalation
Deep Look
Middle East tensions weigh heavily
Financial markets globally fell on Thursday amid fallout from the Israeli-Iran airstrike conflict. Reports of Iran’s foreign minister traveling to Geneva for talks coincided with Israeli strikes on Iran’s Arak heavy-water reactor—events that unsettled investors.
European markets retreat
In early trade, France’s CAC 40 shed 0.8%, Germany’s DAX dipped 0.9%, and the U.K.’s FTSE 100 dropped 0.5%. U.S. equity futures also eased roughly 0.4%, reflecting investor caution as global indices reevaluate risk.
Central banks hit pause on rate changes
Global central banks largely maintained current interest rates. The U.S. Federal Reserve held steady Wednesday, forecasting two rate cuts this year but warning that President Trump’s tariffs could heat up inflation. Meanwhile, the Bank of England kept its benchmark rate at 4.25%, and Switzerland reduced its rate to zero to support growth.
Asia markets slip
Asian markets mirrored the mood: Japan’s Nikkei fell 1%, Hong Kong’s Hang Seng tumbled 2% amid a tech selloff, and the Shanghai Composite declined 0.8%. In contrast, Australia’s ASX 200 held steady, and South Korea’s Kospi rose 0.2%.
Oil volatility returns
Brent crude hovered near $76.77 and U.S. crude at $73.63 per barrel, driven by concerns over supply disruptions via the Strait of Hormuz. Spikes in oil prices have also stoked inflation fears, pressuring markets and prompting central bank scrutiny.
Currency shifts and U.S. data
The dollar strengthened slightly to 145.46 yen. The euro slipped to $1.1476. In the U.S., weekly unemployment claims remained modest, while data showed weaker homebuilding, signaling the drag from higher mortgage rates.
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