Iran launched missile strikes on Israel, triggering a sharp sell-off in Asian equity markets and a notable surge in oil prices. The escalation of geopolitical tensions in the Middle East has increased the risk premium on crude, reflecting investor concerns about potential supply disruptions and regional instability. Energy markets have responded most visibly to the heightened conflict risk, while broader equity markets face headwinds from both the security concerns and the potential economic impact of higher energy costs.

Market participants are now focused on the scope and scale of any potential Israeli response, which could further destabilize the region and push oil prices higher. Key variables to monitor include crude oil price levels, broader equity market resilience in subsequent sessions, and any official statements from major oil-producing nations regarding supply commitments. The intersection of geopolitical risk and energy markets will likely remain a primary driver of volatility in the coming days.