Stock market falls resume as US-Israel war with Iran drives up oil and gas prices

"The optimism which helped lift Asian and European markets early in the day evaporated like water droplets on a smouldering stove top. It's becoming harder to see a quick resolution to the conflict in the Middle East and that in turn is forcing markets to look again at their interest rate expectations for the coming months."

"The US-Israel war with Iran has driven up the price of oil and gas, triggering fears of a renewed inflation shock and dampening hopes of interest rate cuts. Brent crude has jumped 15% in the past five days."

"Wizz Air, which has cancelled flights to and from Israel, Dubai, Abu Dhabi and Amman until 15 March, as the airline warned of a 50m hit to annual profits, also reflecting the impact of higher jet fuel costs. Its shares fell 11.3%."

Global financial markets experienced significant declines on Thursday amid escalating Middle East tensions between the US, Israel, and Iran. European markets initially gained but reversed course, with major indices falling 1.4-1.6%. Wall Street also declined substantially, with the Dow Jones down 2%, S&P 500 down 1.3%, and Nasdaq down 1%. Oil prices rose 4% to nearly $85 per barrel, with Brent crude jumping 15% over five days. European gas prices increased over 3%. The conflict-driven energy price surge triggered renewed inflation concerns, dampening expectations for near-term interest rate cuts. Airlines faced particular pressure, with Wizz Air cancelling regional flights and warning of significant profit impacts from higher fuel costs. Treasury yields rose for a fourth consecutive day as markets reassessed economic outlooks.

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