U.S. military forces have launched strikes against Iranian targets, marking a sharp escalation in a conflict that has been simmering for weeks.
The attacks come as diplomatic channels have effectively collapsed, with Tehran accusing Washington of breaching a fragile ceasefire agreement over the past 48 hours.
Beyond the immediate geopolitical shock, broader has turned sharply risk-off. U.S. consumer confidence data released alongside the escalation shows households are “deeply pessimistic” about the economic outlook, compounding fears that higher energy costs and supply chain disruptions could stoke inflation just as central banks are weighing rate cuts.
Equity markets have sold off in sympathy with the energy spike, while safe-haven flows into Treasuries and gold have accelerated.
Traders are now pricing in a prolonged period of elevated volatility across commodity and freight markets.
Attention will turn to whether diplomatic backchannels can be reopened, alongside upcoming U.S. economic data that will test whether consumer pessimism translates into a broader growth slowdown.