Global Markets Decline Amid Middle East Tensions, Oil Prices Surge

Global stock markets and US futures declined on Tuesday amid escalating tensions in the Middle East. Houthi attacks on oil facilities and utilities in Saudi Arabia's southern region have increased the likelihood of conflict between a key US ally and Iranian-backed rebels in Yemen.

The Germany DAX index fell 0.3% to 25,922.44, while the CAC 40 in Paris dropped 0.2% to 8,291.43. Britain's FTSE 100 remained nearly unchanged at 10,824.32. US futures followed suit with a 0.2% decline for the S&P 500 and a 0.7% drop for the Dow Jones Industrial Average.

In Tokyo, major exporters suffered due to a surge in the value of the Japanese yen. Toyota Motor Corp. shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%. The yen has gained strength against the US dollar over the past few days due to speculation about potential intervention by the US and Japanese governments.

The Japanese economy grew at a slightly faster annual pace in the April-June quarter, revised from an earlier estimate of 1.1% to 1.4%. However, business investment contracted more than initially reported, at minus 0.9%, according to Norihiro Yamaguchi of Oxford Economics.

Oil prices rose with Brent crude increasing 1.5% to $98.48 a barrel and benchmark US crude surging 2.5% to $93.79 a barrel.