The Middle East conflict has intensified following a joint U.S.-Israeli attack on Iran, triggering retaliatory missile strikes across the region, including a direct hit on Dubai. Market attention is now shifting to the Strait of Hormuz, as risks grow that Iran may target commercial maritime traffic in response to the escalation. The Strait is a critical global chokepoint, facilitating approximately one-third of all seaborne oil exports and 20% of global liquid natural gas (LNG) shipments. Energy markets have reacted sharply, with Brent Crude and WTI Crude prices surging amid fears of a prolonged supply disruption. Safe-haven demand for XAU/USD remains elevated as investors weigh the potential for a global inflationary shock if the waterway is compromised. Global equity indices remain under pressure as the international community monitors the stability of vital trade routes.
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