Global Markets Retreat as Middle East Tensions Spike Oil Prices

Global Markets Retreat as Middle East Tensions Spike Oil Prices
Brent crude surged 5% to $106.31 per barrel following Iranian missile attacks on Israeli territory and reports of strikes near a U.S. military base in Bahrain. The geopolitical escalation triggered a sharp global selloff, with Asia's Nikkei 225 dropping 1.87% and European futures sliding 1.2%. Despite Trump administration claims the conflict is nearing completion, analysts warn that immediate threats to energy infrastructure maintain a significant risk premium on oil. Japan's 2-year government bond yields climbed to 1.360% as investors shifted toward safe-haven assets. China's central bank withdrew cash from its financial system for the first time in a year, signaling cautious liquidity management amid heightened global volatility.