Markets React to Middle East Tensions and Oil Price Fluctuations

Global Brent crude oil prices have risen by about 20% in June due to escalating tensions between Israel and Iran, raising concerns about potential supply disruptions and their impact on inflation and economic growth. While the rise has been gradual, the risk of disruptions, especially through key shipping routes like the Hormuz Strait, could push prices above $100, affecting global markets, currencies, and economies, particularly in oil-importing countries. Stock markets remain relatively stable, with energy and defense stocks outperforming, but concerns about inflation and economic growth persist.