US and Israel attack Iran, risk aversion to sweep global markets

Finance

US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israels pre-emptive missile attacks against Tehran.

The US bombed multiple locations in Tehran, Irans Tasnim news agency reported.

Israels Prime Minister Benjamin Netanyahu said that the attacks on Iran were aimed to remove an “existential threat”.

Meanwhile, the Israeli army confirmed that missiles were launched from Iran, prompting sirens in several areas of the country. The Israel Defence Force (IDF) further noted that retaliatory strikes have been launched by Iran.

Israel has declared a state of emergency and advised its citizens to stay close to shelters.

Market implications

A big risk-off wave is expected to rattle global markets as a new week kicks off on Monday, with intense flight to safety likely to set Gold on fire, while Oil prices are also seen storming through the roof.

Safe-haven currencies such as the US Dollar (USD), Japanese Yen (JPY) and the Swiss Franc (CHF) will be the most sought after, while global equity markets could come under tremendous selling pressure.