Gulf equity markets fell sharply as renewed US-Iran hostilities disrupted the vital Strait of Hormuz shipping lane. The weekend's missile and drone exchanges sent oil prices soaring. Brent crude jumped 9.6% to $83.30 a barrel, while U.S. crude rose 9.4% to $78.14.
The conflict fueled global risk aversion. The MSCI world stock index dropped 0.9%, with declines seen in the S&P 500 and Nasdaq. Investors are pricing in higher inflation risks from surging energy costs and potential long-term disruption to global trade.
All eyes are on the Strait of Hormuz, a critical chokepoint for global oil supply. Further escalations could push crude prices to new highs, analysts warn. OPEC and IEA leaders will be closely watched for any policy responses. The situation remains highly fluid, with market direction tied directly to peace negotiations or further military action.