Global markets plunge amid Middle East escalation. Asian equities tumble sharply as geopolitical tensions spike, with the Nikkei 225 down 3 percent and Taiwan's market falling over 2 percent in early trading. Reports of military incidents in the region, including alleged friendly-fire involving U.S. aircraft, have triggered a flight to safety assets. Japanese government bonds and defensive currencies are seeing increased demand as investors retreat from risk. Energy security concerns mount following vessel attacks in the Gulf, prompting the U.S. Navy to prepare escort operations for oil tankers. The U.S. Senate votes today on war powers measures as regional instability threatens broader economic consequences. Defense stocks may benefit from potential arms buildup discussions scheduled at the White House.
