Stocks slide as Middle East conflict fans inflation fears
#Stocks #Middle East conflict #Iran #Oil prices #Inflation #Federal Reserve #Safe haven #Dollar #Asian markets #Energy prices
📌 Key Takeaways
- Asia-Pacific shares outside Japan fell 1%, with Korean shares tumbling 2.5% and Nikkei down 0.8%
- Brent crude surged as much as 13% to $82.37 before settling up 7.1%
- European and Asian LNG prices leapt around 40%
- U.S. dollar index held near six-week high as safe haven demand increased
- Fed funds futures show 97.5% probability Fed will hold rates steady in March
📖 Full Retelling
Stocks resumed their selloff and the dollar strengthened in early Asian trading on Tuesday as investors considered the implications of U.S. and Israeli strikes on Iran on energy prices and the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% to extend losses for a second day, while Tokyo's Nikkei 225 slumped 0.8%. The conflict has caused oil and gas prices to surge, with Brent crude futures reaching as high as $82.37 a barrel before settling up 7.1%, complicating the Federal Reserve's efforts to control inflation amid already elevated economic policy uncertainty.
🏷️ Themes
Geopolitical risk impact on markets, Energy price volatility, Inflation concerns, Safe haven asset flows, Central bank policy uncertainty
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Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices climb amid boost to safe haven demand after U.S.-Iran escalation Dollar surges to over five-week high on U.S.-Iran escalation; euro, sterling slip Stocks end mixed in a solid rebound from initial slide on U.S.-Iran conflict Gold price surge after Iran attack could fade, Pepperstone says FLASH SALE (South Africa Philippines Nigeria) FLASH SALE Stocks slide as Middle East conflict fans inflation fears By Reuters Economy Published 03/02/2026, 07:50 PM Updated 03/02/2026, 08:00 PM Stocks slide as Middle East conflict fans inflation fears 1 US500 0.04% JP225 -1.03% DX -0.04% GC 1.39% ESH26 -0.31% NG 0.27% IXIC 0.36% US10YT=X -0.22% MIPFJIN00PUS -0.01% LCOmdc1 0.00% By Gregor Stuart Hunter SINGAPORE, March 3 - Stocks resumed their selloff and the dollar strengthened in early Asian trading on Tuesday as investors considered the implications of U.S. and Israeli strikes on Iran on energy prices and the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to extend losses for a second day, led by a 2.5% tumble in Korean shares, while Tokyo’s Nikkei 225 slumped 0.8%. S&P 500 e-mini futures were down 0.2%. "Economic policy uncertainty was already elevated and now with the Iran conflict, the geopolitical risk is expected to rise too," said Rupal Agarwal, Asia quant strategist at Bernstein in Singapore. "Last time both spiked was in 2022 during the Russia-Ukraine conflict, which didn’t work well for Asian markets." Stocks on Wall Street stabilised after a volatile session on Monday which saw the S&P 500 rally from an early selloff to close flat and the Nasdaq Composite climb 0.4%, as investors bought the dip in markets after the conflict in the Middle East spilled over into Lebanon. With no end to hostilities in sight, an official from Iran’s Revolutionary Guards said on Monday that the Strait of Hormuz is closed to marine traffic and the country will fire on any ship trying to pas...
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