Stock markets across the world fell sharply after rising geopolitical tensions prompted investors to move away from riskier assets.

Major indices in Europe, Asia and the United States all closed lower as concerns over energy prices and global growth weighed heavily on sentiment.

The Dow Jones Industrial Average and the S&P 500 both recorded losses, while European markets also suffered broad declines.

Investors worried that prolonged conflict in the Middle East could hurt business confidence and disrupt global supply chains.

Financial analysts also pointed to concerns surrounding inflation. Rising oil prices could force central banks to maintain higher interest rates for longer, increasing borrowing costs for businesses and consumers alike.

Technology stocks were among the biggest losers during the session, with investors taking profits following months of strong gains driven by enthusiasm surrounding artificial intelligence.

Market experts say the sector remains fundamentally strong but may experience increased volatility in the short term.

Despite the sell-off, analysts believe investors will continue focusing on corporate earnings and central bank decisions for clues about the direction of global markets during the second half of 2026.

Source: Reuters