Iran Retaliatory Attack Imminent... Global Asset Markets Turbulent

Refusal to Restrain Retaliation in Arab World
Concerns Over Escalation of Middle East Conflict Lead to Nasdaq Futures Decline
WTI and Brent Crude Oil Prices Surge Internationally

[Image source=Yonhap News]

Iran has rejected requests from surrounding Arab countries to refrain from retaliatory attacks against Israel, causing turmoil in global asset markets. Already, the Israeli military has heightened its alert status, and the United States has dispatched warships, raising concerns that the Middle East conflict could escalate beyond the first Iranian mainland attack on Israel in April.

On the 4th (local time), Bloomberg reported that global asset markets are facing increased downward pressure due to the combined concerns of a U.S. economic recession and escalating tensions in the Middle East.

In fact, on the 5th, U.S. Nasdaq 100 futures opened down about 1%. Previously, as of the 2nd, the U.S. Nasdaq index had fallen 2.43%, and the S&P 500 index dropped 1.84%. Other indices such as ▲Euro Stoxx 50 (-2.67%) ▲Japan's Nikkei (-5.81%) ▲Hong Kong's Hang Seng (-2.08%) also showed declines.

International oil prices surged amid fears of intensified Middle East conflict. On that day, West Texas Intermediate (WTI) and Brent crude September contracts rose about 1% each, reaching $74.21 and $77.61 per barrel, respectively. The price of international gold futures, a safe haven asset, also traded up 0.25% at $2,475.30 per ounce at the market open. Some analysts warn that if instability in the Middle East peaks, international oil prices could surpass $100 per barrel in the second half of this year.

The Wall Street Journal (WSJ), citing sources, reported that Iran rejected requests from Arab countries such as Jordan to refrain from retaliation following the assassination of Hamas leaders, stating that "Iran does not mind if military responses against Israel trigger a Middle East war." On the same day, Ayman Safadi, Jordan's Foreign Minister, visited Tehran and urged Iran to exercise restraint, saying, "Jordan will not become a battlefield."

U.S. officials believe that Iran could carry out a broader attack than the one in April when its consulate in Syria was bombed by Israel, prompting Iran's first mainland attack on Israel. WSJ explained, "At that time, Iran launched over 300 missiles and drones toward Israel but provided prior intelligence to Israel and its allies, allowing them to prepare and minimize damage. However, this time, Iran is not showing such movements."

Israel has raised its alert status to the highest level. The United States has decided to reinforce naval and air forces in the Middle East region. U.S. media Axios expects Iran's attack on Israel could occur as early as the 5th. Consequently, countries worldwide are advising their citizens to leave or avoid traveling to dangerous areas such as Iran and Lebanon.

This content was produced with the assistance of AI translation services.