Following Israeli airstrikes on Iranian nuclear facilities, global equities declined while oil prices surged over 8%. Gold approached its all-time high as investors sought safe assets. The S&P 500 and Nasdaq Composite traded 0.8% and 0.9% lower, respectively, as bitcoin also fell 0.6%. US Treasury yields increased, indicating concerns that rising oil prices could lead to sustained inflation. The Federal Reserve is likely to maintain interest rates in their upcoming meeting, although the market perceived potential rate cuts may slow due to geopolitical tensions. Iran has promised severe retaliation, complicating the situation in the Middle East. President Trump confirmed awareness of Israel's plans, further heightening uncertainty in financial markets. Investors typically prefer stable environments, and the evolving geopolitical crisis may sway the outlook for upcoming interest rate decisions. The odds for a rate cut in September decreased slightly, reflecting cautious trading behavior in US Treasurys amid fears of persistent high oil prices.

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