Global Market Turmoil: Oil Surges 5% & Stocks Tank Amid US-Iran Hostilities 📈

• Energy Market Surge: Global oil prices jumped over 5% after the US declared its ceasefire with Iran "over" following fresh attacks in the Strait of Hormuz. Brent crude surged 5.3% to US$ 78.10/barrel, while West Texas Intermediate (WTI) rose 5.4% to US$ 74.31/barrel. • Global Equity Decline: Investor flight from risk assets pulled major stock indices down. Dow Jones futures dropped 0.7% (-351 points), while S&P 500 and Nasdaq-100 futures lost 0.4% and 0.5% respectively. Europe’s STOXX 600 fell 1.5%, with energy being the sole gaining sector. • Asian Market Impact: Regional markets faced heavy selling. South Korea’s KOSPI tumbled 5.4% into bear market territory, and Japan’s Nikkei 225 fell 2.1%. Mainland China's CSI 300 slipped 0.3%, though Hong Kong’s Hang Seng bucked the trend, gaining 3.2%. • Economic Context: The escalation directly impacts the Strait of Hormuz, a critical maritime artery for global energy supplies. For an import-dependent economy like Sri Lanka, sustained high global oil prices historically pressure foreign reserves and inflate domestic fuel and energy costs, impacting manufacturing sectors like apparel & textiles and escalating logistics costs across supply chains.