HG MARKETS:

Global financial markets began the week under pressure, with investors shifting decisively toward traditional safe-haven assets as geopolitical tensions in the Middle East intensified.

The escalation followed retaliatory strikes by Iran targeting US-linked assets across the Gulf region. The attacks came after coordinated military operations by the United States and Israel reportedly resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, along with nearly 40 senior Iranian officials over the weekend.

In a further expansion of hostilities, Hezbollah announced strikes on Israeli missile defense systems, describing the attacks as retaliation for the assassination of Iran’s top leadership. According to NBC News, the conflict has claimed the lives of three US service members, while BBC News reported continued Iranian missile activity across the region early Monday.

Explosions were reported in Bahrain and Dubai, with smoke observed near the US embassy in Kuwait. The BBC also cited an Iranian missile strike on Sunday that killed nine people in the Israeli city of Beit Shemesh, underscoring the widening regional impact of the conflict.

The rapid deterioration in security conditions has heightened fears of a broader regional confrontation, raising concerns about potential disruptions to global energy supplies and international trade routes. Market participants are closely monitoring developments for signs of further military escalation, diplomatic intervention, or spillover effects into neighboring economies, as uncertainty continues to weigh heavily on investor sentiment worldwide.