Global Markets In Turmoil As Stocks Plunge, Oil Prices Jump Amid Escalating Middle East Conflict

Markets around the world opened lower on Monday as the fight between the United States-backed Israel and Iran extended to other West Asian countries.

As of 12 PM on March 2, the S&P index was trading over 1.12 percent lower at 6,823 points, while Dow Futures hovered around 48,465 points, down 1 percent after shedding up to 1.30 percent.

Japan’s Nikkei and Hong Kong’s Hang Seng were also trading in the red, declining 1.46 percent and 2 percent, respectively.

Indian benchmark indices also opened lower on Monday. The Sensex was 1.64 percent lower than its previous close, trading below 80,000 points. The 50-share Nifty was near 24,765 after losing almost 412 points.

Oil prices, often the first casualty of any conflict in the Middle East, surged up to 13 percent before easing somewhat. Brent crude was up over 7 percent at close to $78 per barrel as oil supply through the crucial Strait of Hormuz came to a halt.

The steep decline in global indices and surge in oil prices comes in the backdrop of Iran coming under attack from the US and Israel on Saturday. The conflict began after talks on containing Iran’s nuclear programme failed.

Iran’s top religious leader, Ayatollah Ali Khamenei, was killed in joint strikes by the US and Israel on Sunday.

Global markets are bracing for difficult days ahead as Iran has vowed to strike back. Along with targeting Israeli cities, regions in the United Arab Emirates, Bahrain, Qatar and Oman have come under attack from Iran as the country attempts to pressure US President Donald Trump to step back.

Reports of explosions near major trade centres in the Middle East, including the Dubai Mall and Burj Khalifa, are expected to disrupt business worldwide. There are reports of at least one person killed in an attack on Abu Dhabi airport, while Dubai airport, the world’s busiest for international traffic, also came under attack. Both airports are shut due to airspace closures.