US-Iran Tensions Spark Global Market Volatility

Tensions between the US and Iran have sent shockwaves through global markets on Wednesday. President Donald Trump's comments about possible further military action against Iran caused oil prices to surge, with Brent crude rising 5.5% to $78.25 a barrel and US West Texas Intermediate gaining 4.7% to $73.75.

The Strait of Hormuz is a critical shipping route for global oil supplies, and any disruption could have severe consequences for energy markets. Russia's ban on diesel exports due to Ukrainian drone attacks also added to the rally, with US ultra-low sulfur diesel futures surging more than 14%.

However, gold prices fell as investors focused on inflationary concerns and higher interest rates. The Federal Reserve minutes showed policymakers remained concerned about inflation, with some officials seeing a case for additional rate hikes.

In the crypto space, Bitcoin declined nearly 2% over the past 24 hours as traders reduced risk exposure amid geopolitical uncertainty and weakness in semiconductor stocks.