Global markets are grappling with a dual shock as the United States launches military strikes against targets in Iran, reigniting fears of supply disruptions in the Persian Gulf.
The escalation comes as peace negotiations between the two nations remain stalled, leaving investors to price in heightened geopolitical risk just as the August reporting season approaches.
The immediate market reaction has been one of caution, with energy prices expected to climb on concerns over potential shipping disruptions.
Simultaneously, the broader equity landscape is under pressure from a renewed selloff in technology shares.
The recent rush to dump chipmaker stocks—the so-called picks and shovels of the AI boom—has revived concerns about an investment bubble, dragging down benchmarks in Asia and adding to the day’s volatility.
Asian equity markets opened with divergent signals, but selling pressure in technology shares weighed heavily on indices in Japan and South Korea.