Middle East Tensions Spark Global Stock Decline

Global stock markets and US futures declined on Tuesday as rising tensions in the Middle East pushed oil prices higher. The conflict, fueled by Houthi attacks on Saudi Arabia's oil facilities and utilities, escalated renewed fighting between a key US ally and Iranian-backed rebels in Yemen.

The DAX in Germany 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 also declined, with the S&P 500 down 0.2% and the Dow Jones Industrial Average falling 0.7%. Tokyo's Nikkei 225 gave up early gains, plummeting 1.7% to 65,269.33 as major exporters were sold due to a surge in the value of the Japanese yen.

The US dollar slipped to 153.86 Japanese yen from 154.34 yen on Tuesday. The government reported that the economy grew at a slightly faster annual pace in the April-June quarter than earlier estimated, at 1.4%. However, Norihiro Yamaguchi of Oxford Economics noted that supply-side-driven inflation will accelerate ahead as firms pass on increased costs.