Oil prices surge as Middle East conflict escalates, triggering broad market selloff. Brent crude jumped 7.5% to $78.34 per barrel while U.S. crude climbed 7.3% to $71.88 as military tensions between the United States, Israel, and Iran intensify. Gold rose 1.5% to $5,358 an ounce as investors flee to safe-haven assets. Stock markets declined globally, with the S&P 500 showing mixed results while Asian indices fell significantly. The Strait of Hormuz, critical for global oil transport, faces potential disruption as tankers accumulate on either side. Analysts warn prolonged oil price spikes could reignite inflation and dampen economic demand. U.S. markets face additional pressure this week with key economic data including ISM manufacturing surveys and payroll reports. The geopolitical situation poses significant risks to global energy supplies and economic stability.
