Global stock markets fell on Tuesday and oil prices jumped over $1 per barrel after Israel issued an evacuation warning for a large section of Tehran, escalating fears of a broader regional conflict and its impact on energy supplies.The warning targeted 330,000 people in the Iranian capital, including areas housing state television, police headquarters, and hospitals—one reportedly linked to the Revolutionary Guard. US President Donald Trump cut short his G7 trip in Canada, citing the growing crisis, AP reported.Brent crude, the international benchmark, gained $1.13 to $74.34 per barrel, while US crude rose $1.05 to $72.82. Analysts warned that any prolonged disruption in Iranian oil flows could push gasoline prices higher globally, although past conflicts have seen price spikes fade quickly.Equities in Europe and Asia bore the brunt of investor anxiety. Germany’s DAX dropped 1.3% to 23,380.79, France’s CAC 40 declined 0.9% to 7,669.44, and London’s FTSE 100 shed 0.5% to 8,833.00. US futures also pointed lower, with contracts on the S&P 500 and Dow Jones Industrial Average both down 0.6%.In Asia, Japan’s Nikkei 225 bucked the trend, rising 0.6% to 38,536.74 after the Bank of Japan left its benchmark interest rate unchanged at 0.5%. The central bank acknowledged weakening consumer sentiment and housing activity, while noting the outlook for global trade remained uncertain.“In particular, it is extremely uncertain how trade and policies in each jurisdiction will evolve and how overseas activity and prices will react to them,” the BOJ said in its statement.Elsewhere, markets showed mixed responses. Hong Kong’s Hang Seng slipped 0.3% to 23,980.30, Shanghai’s Composite index was flat at 3,387.40, and South Korea’s Kospi edged up 0.1% to 2,950.30. Australia’s ASX 500 dipped 0.1% to 8,541.30, while Taiwan’s Taiex rose 0.7%. Thailand’s SET index was nearly unchanged.On Wall Street, stocks had closed higher Monday. The S&P 500 rebounded 0.9% after Friday’s drop, the Dow rose 0.8%, and the Nasdaq climbed 1.5%.US Steel surged 5.1% following President Trump’s executive order supporting a planned investment by Japan’s Nippon Steel, which could give the US government considerable influence over the steelmaker’s operations.Gold, which had spiked on Friday amid the flight to safety, eased $18.40 to $3,398.70 an ounce.Investors remain watchful of other threats, including Trump’s tariff regime, which has stoked concerns about inflation and potential economic slowdown. These fears loomed over the recent G7 summit, with trade tensions high on the agenda.The US Federal Reserve is scheduled to meet this week, with markets broadly expecting it to hold rates steady. Though inflation remains near the central bank’s 2% target, officials have paused rate cuts after one reduction late last year, pending clarity on the economic fallout from Trump’s trade policies.Currency markets were relatively stable. The US dollar ticked up to 144.80 yen from 144.75 yen, while the euro dipped to $1.1557 from $1.1562.
