Global markets are on edge following coordinated U.S. and Israeli military strikes across Iran. The “major combat operations,” as described by U.S. President Donald Trump, targeted several ministries in Tehran and other locations, raising fears of a wider regional conflict and significant economic repercussions, particularly concerning oil supplies.
Market watchers are bracing for turbulence, with analysts predicting a “rough and risk-off” opening for global equities. The strikes are seen as having far greater market ramifications than previous geopolitical events, such as the situation in Venezuela. Experts anticipate a significant uptick in oil prices due to Iran’s strategic position as a chokepoint in global oil transit, particularly the Strait of Hormuz. Investors are closely monitoring whether the conflict remains contained or escalates into a prolonged regional war, which could severely impact Asian markets reliant on stable energy supplies.
Russia has vehemently condemned the strikes as a “preplanned and unprovoked act of armed aggression,” accusing the U.S. and Israel of pursuing regime change under the guise of nuclear concerns. China has also expressed deep concern, calling for an immediate halt to military actions and a resumption of dialogue. The United Nations Secretary-General, António Guterres, condemned the “military escalation” and called for an immediate cessation of hostilities, warning of grave consequences for civilians and regional stability. The UN Security Council convened an emergency meeting to address the crisis.
European leaders, including those from France, Germany, and the UK, urged Iran to seek a negotiated solution and emphasized their non-involvement in the strikes. Spain rejected the unilateral military action, while Canada expressed support for U.S. efforts to prevent Iran from obtaining nuclear weapons. Several Gulf states, including Qatar, the UAE, and Bahrain, condemned Iranian retaliatory attacks on their territories, which host U.S. military assets.
Iran’s Ministry of Foreign Affairs accused Israel and the U.S. of violating the UN charter and vowed a harsh response. Senior Iranian officials declared that all American and Israeli assets and interests in the Middle East have become legitimate targets, signaling a significant escalation. The country has already launched retaliatory missile strikes against U.S. military bases in Bahrain and other locations in the Gulf region. Lebanon’s Hezbollah condemned the attacks and declared solidarity with Iran, calling for regional resistance.
While many nations called for de-escalation, Ukraine’s President Volodymyr Zelenskyy appeared to endorse the strikes, citing Iran’s role in supplying drones to Russia. Meanwhile, Oman, a key mediator in U.S.-Iran negotiations, expressed dismay and urged the U.S. not to become further entangled. The situation highlights the complex geopolitical landscape, with ongoing diplomatic efforts struggling to contain the rapidly unfolding crisis.