Markets dip amid rising Middle East war fears

2 min read

Asian markets went down on Thursday because people were worried that the problems between Israel and Hamas might lead to a bigger war in the Middle East. Benjamin Netanyahu was getting ready for a big attack on Gaza, and this made things worse. Iran talked about attacking first and said they should stop selling oil to Israel. President Joe Biden was going to talk about this on TV, and he supported Israel when he visited them.

However, after a hospital in Gaza got hit, leaders from Jordan, Palestine, and Egypt canceled their meeting with Biden. This hospital problem made things even more tense, and a group from Lebanon called for a “day of rage.”

Iran’s Foreign Minister said Islamic countries should stop selling oil to Israel and kick out Israeli ambassadors. People in the financial markets got worried about all of this, and stock markets in Asia, like Hong Kong, Tokyo, and others, went down. Oil prices went up a bit, but they also went down later.

Traders also got nervous because they thought the U.S. central bank might raise interest rates or keep them high for a long time. This made U.S. government bond yields go up a lot. People are waiting to hear what the head of the central bank will say.

In simple terms, stock markets in Asia dropped due to concerns about the situation between Israel and Hamas potentially leading to a bigger war in the Middle East. Other factors like oil prices and interest rate worries also contributed to market uncertainty.

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