Oil Surges 5% Amid Fears of Ceasefire Collapse with Iran; Asian and European Markets Turn Red

Oil prices surged approximately 5% following an Israeli military strike on Iran in retaliation for prior attacks, raising fears of a ceasefire collapse. The escalation triggered a broad risk-off move across global markets, with Asian and European indices turning red. South Korea's KOSPI index fell over 8%, triggering a trading halt circuit breaker. US equity futures traded mixed amid the uncertainty. Goldman Sachs commented on South Korea, stating that after the market finishes its shakeout, it will stabilize and continue to new highs. The attack marks a significant escalation in the ongoing conflict, directly involving Iran and threatening regional stability.

Global Impact

Geopolitically, the Israeli strike on Iran risks a broader regional war, potentially drawing in proxies and disrupting oil supply routes through the Strait of Hormuz. Economically, the oil price surge will feed into inflation expectations, complicating central bank rate paths globally.