Rising U.S.-Iran tensions put global stocks under pressure as oil climbs

Global markets are trading cautiously today as escalating tensions between the U.S. and Iran revive geopolitical risk and push investors into safer assets. After a brief recovery on Monday, risk appetite has weakened again, with major equity indices under pressure and more volatile segments of the market, such as U.S. growth and small-cap stocks, seeing sharper declines. The renewed conflict concerns are raising fears of potential disruptions to Middle Eastern energy supplies, which is helping to lift oil prices. Higher oil prices can feed into inflation and raise costs for businesses and consumers worldwide, adding another layer of uncertainty for central banks already balancing growth and price stability. Overall, the dominant driver for markets today is a classic risk-off reaction to geopolitical stress: equities are softer, energy prices are firmer, and investors are reassessing global growth and inflation risks in light of the U.S.-Iran standoff.