Overview
- The U.S. military said it intercepted and repelled Iranian missile launches aimed at Bahrain, Kuwait and other regional targets while Iranian state media published a disputed IRGC claim that it hit the U.S. Fifth Fleet headquarters.
- Brent crude climbed about 2% toward $98 a barrel as the fighting raised the risk premium on Middle East supply, which pushed airline shares lower on fears of higher fuel costs.
- European equity indexes opened modestly lower, with Germany’s DAX down most, while auto stocks led sector declines and Spain’s Inditex bucked the trend with a near 5% jump after a strong summer trading update.
- Government bond yields in Europe rose and investors increased bets on further ECB rate hikes after the market moved money into assets seen as safer from conflict-driven shocks.
- The strikes risk stalling fragile U.S.-Iran negotiations that aim to end the wider conflict and reopen the Strait of Hormuz, a development that would affect global shipping, inflation for oil importers and central bank policy choices.