Middle East conflict escalates: global stock markets big dump, safe-haven assets pump

Gate News bot reported that, according to Reuters, global stock markets fell on Thursday, and the dollar rose as investors worried that the U.S. might get involved in air strikes against Iran, seeking safe-haven assets and dumping riskier assets. U.S. President Donald Trump said to reporters outside the White House on Thursday, "I might do it, and I might not." This move by Trump has sparked speculation about whether the U.S. will join Israel in bombing Iran's nuclear facilities.

According to The Wall Street Journal, Trump has informed senior aides that he has approved a plan to attack Iran, but he has not yet given the final order to see if Tehran will abandon its nuclear program. European stock markets have fallen for the third consecutive day, with the Stoxx 600 index (.STOXX) dropping nearly 2.5% this week, marking the largest weekly decline since the turbulence caused by tariffs in April. The S&P 500 futures in the United States fell by 0.6%, although most U.S. markets, including Wall Street and the U.S. Treasury market, will be closed on Thursday for a public holiday. Kyle Rodda, a senior financial market analyst at Capital.com, stated: "Market participants remain anxious and full of uncertainty." He stated that the market generally speculates that "the United States will intervene, which will mark a substantial escalation of the situation and may provoke direct retaliation from Iran against the United States. This scenario will intensify the risk of regional conflict and impact global energy supply and even economic growth." Recent market tension is primarily focused on the impact of Middle Eastern crude oil supply disruptions, which has led to an 11% rise in crude oil prices within a week. Brent crude oil prices increased by nearly 1%, reaching $77.40 per barrel, close to the highest level since January. Gold prices typically perform weakly when the dollar rises, but have recovered earlier losses, currently trading at $3366 per ounce. The US dollar overall pumped, the euro fell by 0.1% to 1.1466 dollars, and the Australian and New Zealand dollars—both risk-related currencies—fell by 0.7% and 1%, respectively.