Markets Volatile Amid Israel-Iran Tensions and G7 Warning

Global markets remained volatile as tensions between Israel and Iran escalated, driving oil and natural gas prices higher and prompting investors to shift toward safe-haven assets like gold and the yen. Despite ongoing missile exchanges and increased geopolitical risk, U.S., European, and Asian stock markets showed resilience, buoyed by reports that Iran may be open to negotiations if the U.S. avoids military intervention. G7 leaders reaffirmed Israel's right to self-defense and stressed that Iran must not obtain nuclear weapons, while several countries issued travel advisories for the region. The Bank of Japan held interest rates steady and announced a slower reduction in bond purchases, which supported the yen. Market participants remain cautious, monitoring upcoming monetary policy decisions from the Federal Reserve, Bank of Japan, and Bank of England, as well as Middle East developments. Analysts suggest that if the conflict remains contained, its impact on global markets may be limited.