Risk-off assets surge as markets react to conflict in Iran

Market Reactions - The US and Israel's air strike campaign against Iran has triggered a significant shift in investor sentiment, leading to a movement from equities to safer assets [1] - Futures on US equity markets, including the S&P 500 and Dow Jones Industrial Average, fell by approximately 1.2%, while the Nasdaq 100 experienced a deeper decline of 1.6% [2] - The Tadawul All Shares Index in Saudi Arabia dropped roughly 4.6% before recovering to a 2% loss, while Egypt's EGX30 index slid nearly 6% before stabilizing at a 2.5% loss [3] Safe-Haven Assets - Gold prices surged over 3% to exceed $5,410 per troy ounce, reflecting a strong demand for safe-haven assets amid rising geopolitical risks [4] - The US dollar gained approximately 0.7% against other major currencies, while the Swiss franc initially spiked but later pared gains as the dollar strengthened [5] - Oil prices saw a significant increase, with Brent crude rising 13% to trade above $82, driven by concerns over disruptions in the Strait of Hormuz [7] Energy Sector Performance - Energy stocks experienced gains, with Saudi Aramco increasing by roughly 3% due to predictions of higher oil prices, while Australian companies like Woodside Energy and Beach Energy rose over 4% [8]