Stock Market Impact: The S&P 500 index fell 2.64%, while the oil benchmark LCO rose 3.77% and crude CL rose 3.62%; the U.S. dollar index (DXY) gained 0.66% following the escalation.
Listed Companies and Sectors: Energy‑related equities benefited from the surge in oil prices; broader equity markets experienced pressure due to heightened geopolitical risk.
Investment Flows: No specific data on FDI/FPI, but the renewed hostilities and threats to the Strait of Hormuz are likely to increase risk premia for investors targeting the region.
Interest Rates, Inflation, and Liquidity: No direct monetary policy actions were mentioned; however, rising oil prices could feed into inflation expectations and influence central bank considerations.
Fiscal or Monetary Policy: No fiscal or monetary measures were announced; U.S. President Donald Trump intervened diplomatically, urging Israel not to retaliate further.
