Tensions in Middle East Propel Global Markets into Uncertainty

Global stock markets and oil prices experienced significant fluctuations due to escalating Middle East tensions. While oil saw its largest weekly gain in two years, investors held cautious positions ahead of the U.S. nonfarm payrolls report, which may influence future monetary policies. Economic resilience continues to be observed despite geopolitical challenges.

Global stock markets ended on a high note on Friday, while oil prices surged to their largest weekly increase in the past two years, driven by escalating tensions in the Middle East. The impending U.S. nonfarm payrolls report kept investors cautious, as they avoided large-scale movements in asset prices.

The report is expected to play a crucial role in determining the direction of monetary policy in the upcoming months. Amid ongoing geopolitical uncertainties, markets showed resilience, bolstered by China's stimulus measures, which spurred a rally in Hong Kong stocks.

The energy sector witnessed a dramatic rise, with oil prices up 8.6% this week. U.S. President Joe Biden's comments on potential actions against Iran contributed to the surge. Meanwhile, global equities and currencies remained volatile, reflecting the complex interplay of economic and political factors at play.

(With inputs from agencies.)