A missile exchange between Iran and Israel has intensified tensions in the Middle East, triggering market jitters and casting doubt on the prospects of ongoing peace talks.
The Israeli military reportedly launched strikes on Iranian military targets following an attack by Iran on northern Israel.
This escalation marks a significant shift in the fragile dynamics between the two nations.
Markets have reacted with heightened volatility, with investors for signs of further escalation.
The repricing of risk has been evident in energy and equity markets, as traders factor in the potential for prolonged conflict and its impact on global supply chains.
The recent developments come amid a backdrop of fragile diplomatic efforts aimed at stabilizing the region.