Iran has continued military activities in the Middle East and against Israel despite an existing ceasefire, escalating regional tensions. This persistent aggression is affecting risk appetite and driving demand for safe-haven assets, while increasing risk premiums on emerging market currencies and equities exposed to Middle Eastern instability. The Israeli shekel and regional energy-linked currencies are particularly sensitive, with elevated volatility in oil prices due to potential supply disruption and heightened military confrontation. Investors are assessing the likelihood of broader regional conflict impacting global energy flows and trade routes. The upcoming OPEC+ meeting and any statements from major global powers on de-escalation efforts will be key catalysts for market direction.
Iran continues attacks in the Middle East and on Israel, despite the ceasefire - FXStreet
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