U.S. stock futures fall as Iran attacks Israel; South Korea's Kospi plunges 7%: Live updates

U.S. stock futures fell sharply and global markets tumbled after Iran launched a direct military attack on Israel, escalating conflict in the Middle East. South Korea's Kospi index plunged 7%, reflecting broad risk-off sentiment across Asian and European markets. Oil prices surged more than $2 per barrel as traders priced in potential supply disruptions from the region, which produces about a third of the world's crude. The attacks shattered a fragile cease-fire between Israel and Iran, raising fears of a wider regional war. Central banks, already grappling with inflation, now face added pressure from rising energy costs. The U.S. Federal Reserve and other major central banks are monitoring the situation closely, with rate hike expectations intensifying. The conflict has also disrupted shipping routes in the Red Sea, compounding existing supply chain strains.

Global Impact

This is a geopolitical and economic shock with immediate market consequences. Economically, the oil price spike threatens to reignite global inflation, complicating central bank policy and potentially triggering further interest rate hikes.