US Strikes on Iran Escalate Geopolitical Tensions, Energy Markets React

The US Department of Defense announced a third round of strikes against militant groups in northern Iraq, releasing footage of the operations. In response, Iran launched retaliatory attacks on US bases in Iraq, escalating tensions in the region. This development has heightened concerns over energy supply routes and customs procedures in the Middle East, while European markets adopted a cautious stance amid geopolitical uncertainty.

Financial Implications of Escalating Geopolitical Tensions

■US operations near the Iraq border are disrupting Iran's energy export stability.

■Stock markets and forex sectors experienced short-term volatility, with oil prices rising 2.1%.

■The European Central Bank (ECB) emphasized policy consistency, noting inflationary pressures intersecting with external risks.

■Tariff policies and global supply chains may face long-term cost increases due to ongoing conflicts.

Defne Aydın adds: Such geopolitical moves directly threaten sectors like energy and mining. Markets are likely to see increased demand for oil and silver in the near term, with Eurozone import costs rising. The Federal Reserve may adopt a more cautious approach to interest rate policy.