Geopolitical Tensions Trigger Sell‑Off in Global Markets

U.S. escalation of air strikes against Iran and lingering threats in the Strait of Hormuz have thrust global equity markets into a sharp sell‑off at the start of the week.

Escalating Conflict in the Middle East

■U.S. launched 5 new air operations in the past 48 hours, heightening regional uncertainty.

■Strait of Hormuz traffic fell 30%, raising the risk of supply‑chain disruptions.

■Iranian defense officials announced a 15% increase in military activity across the theater.

Energy Market Turbulence

■Brent Crude shed $2.3 billion in value, slipping 1.2% at the week’s open.

■Natural gas futures slipped from $0.85 to $0.78, an 8% decline.

■OPEC+ meeting postponement added 5% more supply uncertainty.

Risk Appetite and Liquidity Shifts

■S&P 500 fell 2.3% to 4,150 points.

■VIX volatility index rose to 22.5, up 12%.

■U.S. Treasury 10‑year yields climbed to 3.9%, reflecting a flight to safety.

Fatih Kılıç: “Geopolitical tension is imprinting a clear bias on markets, especially in energy and risk‑appetite segments. The heightened nuclear risk triggers short‑term liquidity outflows, while an unexpected 0.4‑point ISM manufacturing surprise offers a modest counterbalance to volatility. Yet, the escalating threat in the Hormuz Strait could push Core CPI pressures higher, nudging central banks toward a potential 25‑basis‑point rate hike.”