US Strike on Iranian Rocket Launchers Sparks Global Market Volatility

Global markets are experiencing mixed reactions following the US strike on Iranian rocket launchers. European shares were down, with Germany's DAX losing 0.9% and France's CAC 40 edging lower by 0.1%. Markets in Britain were closed for a bank holiday.

The S&P 500 and Dow Jones Industrial Average futures fell 0.2%, while Brent crude oil prices surged over 3% to $91.40 per barrel after the US military action. This increase is seen as a result of the return to open conflict in the region, which had previously been marked by economic pressure.

Stephen Innes of SPI Asset Management noted that 'quiet in the Strait of Hormuz is not the same as peace.'

The Fed's potential interest rate hike was also a key factor in market movements. US Treasury yields jumped to 4.35% from 4.22%, indicating increased expectations for a rate increase.