Tuesday, 02 January 2024 12:17 GMT

Global Markets Lose Trillions


(MENAFN) Global equity markets have shed trillions of dollars in overall value since the onset of the US and Israeli conflict with Iran, as investors rapidly moved away from riskier assets in response to an unprecedented energy crisis.

Geopolitical strain has intensified since Feb. 28, when the US and Israel initiated a coordinated strike, prompting Iran to retaliate by targeting energy facilities across the Gulf region.

These rising tensions have triggered widespread uncertainty in international markets, fueled concerns over inflation, and caused significant volatility in commodity prices.

Oil prices surged by approximately 45%, while gold experienced a decline of about 15% during the same period.

The Bloomberg World Exchange Market Capitalization index, which tracks dozens of global stock exchanges, dropped from $157.5 trillion to $146 trillion over the course of the month, marking a decrease of $11.5 trillion.

Meanwhile, losses in the S&P 500—representing a large portion of US-listed companies—have surpassed $5 trillion in March alone.

Key stock indices around the world recorded notable downturns throughout the month, with declines averaging close to 10%.

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