Markets fall on Middle East tensions and US inflation data
Global stocks fell and oil prices rose following U.S. strikes on Iranian sites. Investors now await May inflation data to gauge Federal Reserve policy.
The United States military attacked Iran air defense and radar sites overnight, triggering a global shift toward risk-off assets. The strikes followed the downing of a U.S. helicopter near the Strait of Hormuz, threatening a fragile April ceasefire. Investors are rotating out of high-growth technology sectors as geopolitical instability complicates the global inflation outlook.
### Middle East Escalation Pressures Global Equities The latest military action targeted Iranian ground control stations and surveillance sites in response to attacks on commercial shipping. While the U.S. military confirmed the strikes, investors are monitoring whether this escalation derails a potential peace deal to end the three-month conflict. Sentiment remains fragile as progress on a long-term resolution has slowed.
