• US strike on Iranian nuclear sites expected to trigger an oil price spike.
• Investors anticipate a rush to safe-haven assets amid market uncertainty.
• Geopolitical tensions may adversely affect global economic stability.
• Market reactions vary, with some Gulf economies showing resilience.
• Concerns over inflation if oil prices escalate significantly.

A US attack on Iranian nuclear sites has prompted fears of a significant spike in oil prices and a rush towards safe-haven investments, as investors assess the implications of escalating tensions in the Middle East. Investor sentiment indicates an expectation of a possible sell-off in global stock markets and heightened demand for the US dollar and other secure assets when markets reopen, with much uncertainty looming over future developments. "I think the markets are going to be initially alarmed, and I think oil will open higher," said Mark Spindel, chief investment officer at Potomac River Capital, highlighting the potential volatility across markets, according to The Jakarta Post, South China Morning Post, and Dawn.

The geopolitical climate has contributed to rising Brent crude oil prices, which recently hit a near five-month high. Investors are closely monitoring the potential outcomes from Iran's missile attacks on Israel, particularly in regard to whether these actions will exacerbate the already tense conditions. "Much depends on how Iran responds in the coming hours and days, but this could set us on a path towards $100 oil if Iran responds as they have previously threatened to," noted Saul Kavonic, a senior energy analyst, according to The Jakarta Post, South China Morning Post, and Dawn.

Market analysts anticipate that rising oil prices could contribute to higher inflation rates, dampening consumer confidence and limiting the likelihood of near-term interest rate cuts by the Federal Reserve. This concern reflects fears that prolonged elevated oil prices could adversely impact an already stressed global economy faced with previous challenges, such as tariffs imposed during the current administration, according to The Jakarta Post, South China Morning Post, and Dawn.

Interestingly, stock market reactions among Gulf states appeared relatively resilient following the news, with markets in Qatar, Saudi Arabia, and Kuwait showing stability or slight growth. Meanwhile, Israel's stock market reached unprecedented levels despite the heightened tensions, indicating varying investor responses across the region amidst the unfolding conflict, according to The Jakarta Post, South China Morning Post, and Dawn.