Asian stocks tumbled on Friday, April 5, and oil extended the previous day’s surge on worries that Israel‘s war with Hamas could widen to a regional conflict with Iran as both sides ratcheted up tensions.
The threat of regional war compounded fears that the Federal Reserve would not cut interest rates as much as previously expected, with focus now on the release of key US jobs data later in the day.
The sell-off followed a plunge across the board on Wall Street that observers said could also be partially blamed on profit-taking from a months-long rally that has seen several indexes hit multiple records this year.
Optimism was at a premium on trading floors after a deadly strike on the Iranian consulate in Damascus, which Tehran blamed on Israel and threatened retaliation.
Supreme leader Ayatollah Ali Khamenei said Tuesday the country “will be punished at the hands of our brave men. We will make them regret this crime and the other ones”.
On Wednesday he called the strike a “desperate” effort by Israel that “will not save them from defeat” in Gaza. “Of course they will be slapped for that action.”
Israeli Prime Minister Benjamin Netanyahu in return has pledged to go after those who harm his country.
The military strengthened its defences Thursday, while the army paused leave for combat units, blocked GPS signals in certain places and raised its “alertness”.
Source: AFP
Asian equities tumble, oil extends gains on Middle East worries
