Global markets have shifted into a risk-off mode as renewed tensions and an exchange of fire between the U.S. and Iran have strained a fragile ceasefire. The conflict has sparked investor concern that the ongoing instability may keep inflation elevated and continue to push oil prices higher.
The rally in U.S. stocks stalled on Wednesday, snapping a nine-day winning streak for the S&P 500. This volatility extended to Asian and Asia-Pacific markets, which were poised for losses and set to open lower.
Asian shares retreated following the declines on Wall Street, and European equity markets are expected to follow suit as markets react to the escalating geopolitical strain.