Global stock markets experienced a selloff in early Asian trading as investors reacted to U.S. and Israeli strikes on Iran, which have driven up energy prices and heightened geopolitical risk.
MSCI's Asia-Pacific index fell 1%, with Korean shares down 2.5%. Brent crude futures surged as much as 13% to $82.37 a barrel, and natural gas prices also saw significant increases.
This surge in energy costs complicates the Federal Reserve's efforts to control inflation, with recent manufacturing data showing rising prices at the factory gate. Market expectations for a Fed rate cut in June have diminished.
The U.S. dollar strengthened as a safe-haven asset, while Treasury yields declined. Gold prices saw a slight increase.
Inflation Fears Spark Selloff as Middle East Conflict Enters Fourth Day(current)
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