Stock markets are sliding, and the oil price has soared, after Israel launched an attack on Iran overnight, targeting nuclear facilities, military commanders and Iranian scientists.
The attacks, a major escalation of tensions in the Middle East, have sent investors dashing into safe haven assets, fearing it could spiral into a wider conflict.
Brent crude oil soared by more than 10% when news of the attacks broke, reaching its highest level since January. It is now up 8% at $73.52 a barrel, which would be the biggest rise since 2022.
Oil was driven higher by worries that supplies from the region could be disrupted, if the conflict escalates.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, suggests that oil could push higher, perhaps to $90–$100 a barrel, in that scenario, saying: "Oil jumped as much as 13% after Israel launched a major and unprecedented attack on Iran, targeting nuclear and military facilities.
"While the news isn’t entirely surprising – there had been reports of Israel preparing action and the US ordered Americans to leave the region earlier this week – the Israeli strikes could mark the beginning of wider regional tensions. If Israel continues operations beyond its borders, the Middle East could heat up fast.
"Latest: Israel says Iran’s nuclear programme poses an existential threat and vows that its operation will continue for as long as necessary. Iran has already launched hundreds of drones in retaliation and could go further. But how much further?"
Shares across Asia-Pacific stock markets fell sharply after Israel launched its military operation at Iran’s nuclear facilities.
Japan’s Nikkei dropped 1%, South Korea’s Kospi has lost 0.85% and China’s CSI 300 is down 0.66%.
European stock markets have joined the global sell-off, as the overnight escalation in the Middle East has triggered a wave of risk-off sentiment.
Here’s how the main indices have fallen: Germany’s Dax -1.35%, France’s Cac -1.2%, Italy’s FTSE MIB -1.45% and Spain’s Ibex -1.55%.
You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396
Dublin is the only large European capital without a metro: what would Leopold Bloom make of that? 
Demob-happy IFS director tears into Rachel Reeves’s spending review 
