Investors closely monitor escalating tensions between Israel and Iran.
Oil prices surged while most stock markets declined on Tuesday following President Donald Trump’s sudden exit from the G7 summit, sparking fears of potential U.S. involvement in the conflict.
The cautious optimism investors had the day before—hoping the crisis wouldn’t expand across the Middle East—shifted to growing anxiety as the fighting reached its fifth day.
“There’s still no indication that tensions in the Middle East are cooling down, keeping investors on edge,” noted Russ Mould, investment director at AJ Bell.
Investors are now waiting for the U.S. Federal Reserve’s decision on Wednesday, where it’s expected they will keep interest rates unchanged.
At the same time, attention was also on the G7 summit, where world leaders criticized President Trump’s trade war, saying it could harm the global economy.
Leaders from countries like the UK, Canada, Italy, Japan, Germany, and France urged Trump to cancel his plan to increase tariffs on other nations next month. Investors closely monitor escalating tensions between Israel and Iran.
“Since Trump left the summit early, it’s unlikely any new trade deals will happen soon,” said analyst Fawad Razaqzada from City Index and FOREX.com.
However, Trump did manage to sign a trade agreement with UK Prime Minister Keir Starmer before leaving.
Nairobi protestors against proposed finance bill.
