Tuesday, 02 January 2024 12:17 GMT

'Fear Index' Surges 15.5 Percent Following Iran-Israel Strikes


(MENAFN) Market anxiety spiked sharply on Friday as the VIX volatility index, often dubbed the “fear index,” jumped 15.52% amid a dramatic military escalation between Iran and Israel.

The surge followed a series of Israeli strikes launched early Friday targeting Iran’s nuclear infrastructure and military assets. Among the targets were strategic locations in Tehran, Natanz, Tabriz, and Isfahan. The attacks reportedly resulted in the deaths of senior Iranian military commanders and nuclear scientists.

In swift retaliation, Iran launched Operation True Promise III on Friday night, intensifying fears of a broader regional conflict.

By 20:30 GMT, the VIX had risen 2.8 points to 20.82, reflecting heightened investor unease and a potential shift toward risk-off sentiment in global markets.

The VIX is widely used as a gauge of expected short-term market volatility, with spikes often coinciding with geopolitical instability or economic shocks.

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