Global markets were rocked on Monday as oil prices surged to a five-month high and Asian equities plunged, triggered by the escalating Israel-Iran conflict now drawing U.S. military involvement. The Brent crude benchmark rose above $93 per barrel, its highest since January, raising concerns about potential supply disruptions across the Middle East.
The rising geopolitical tension is rattling investors, with major indices in Japan, South Korea, and India closing sharply lower. The Nikkei 225 dropped 2.3%, while Sensex fell by over 800 points, reflecting panic over energy inflation and flight from risk assets.
The escalation between Israel and Iran, which now includes direct U.S. military engagement, has deepened fears of a full-scale regional war that could disrupt critical oil supply routes through the Strait of Hormuz — a chokepoint for nearly one-third of global oil shipments.
Analysts warn that prolonged conflict could trigger inflationary pressures worldwide, strain central banks’ policy responses, and stall recovery in emerging markets.
Key Highlights:
Brent crude hits $93+, highest since January 2025
US military joins escalating Israel-Iran conflict
Asian markets slump; Nikkei, Sensex, Hang Seng in red
Energy stocks rise; airlines and logistics take a hit
Economists warn of ripple effects on global inflation and GDP.
FAQ:
Q1. Why are oil prices rising in 2025?
Oil prices are rising due to escalating tensions in the Middle East, particularly between Israel and Iran, along with the recent involvement of the U.S. military, threatening key supply routes.
Q2. How has the conflict impacted Asian markets?
Asian stock markets have plunged amid fears of energy price shocks and geopolitical instability. Key indices like the Nikkei, Hang Seng, and Sensex all saw significant losses.
Q3. What does U.S. involvement mean for the region?
The U.S. joining the Israel-Iran conflict raises the stakes and increases the risk of a broader war, which could severely disrupt oil supplies and heighten global economic uncertainty.
published on 23rdjune
Publisher : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed