Markets Fall as Rising US - Iran Tensions Push Oil Prices Higher

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London: European stocks and U.S. futures slipped on Wednesday as renewed tensions between the United States and Iran drove oil prices higher and raised concerns about the global economy.

Oil prices rose for a third straight session, with Brent crude nearing $100 a barrel, after fresh hostilities in the Gulf cast doubt on efforts to secure a formal peace agreement between Washington and Tehran.

The OECD warned that a prolonged conflict could slow global growth and fuel inflation. While European and U.S. markets weakened, Asian stocks remained resilient, supported by continued investor enthusiasm for artificial intelligence-related companies.

Analysts said growing uncertainty over the Middle East situation has prompted investors to reassess market risks and reduce some of their earlier bets on a diplomatic breakthrough.

Pic Credit: AFP/ Representative Image