Israel-Iran Attacks Drive Global Market Volatility, Crude Prices Surge

Stock markets worldwide, including Indian and U.S. equities, faced significant volatility and declines amid escalating geopolitical tensions following Israel's strike on Iranian nuclear facilities. This conflict intensified fears of oil supply disruptions, pushing Brent crude oil prices higher and driving investors toward safe-haven assets such as gold, while prompting risk aversion in equity markets. Market participants are also closely watching the U.S. Federal Reserve's upcoming interest rate decision, with expectations ranging from a hold to possible rate cuts later in the year, influenced by recent inflation data that showed a slight rise but remains below some forecasts. The Fed's cautious, wait-and-see approach amid tariff impacts and inflation trends is a key driver for U.S. stocks, with President Donald Trump advocating for more aggressive rate cuts. Additionally, a newly agreed trade framework between the U.S. and China on rare-earth minerals adds a layer of complexity to market outlooks. Overall, investor sentiment is tempered by geopolitical risks, premium market valuations, and critical central bank meetings that will shape near-term market direction.