US military forces conducted targeted strikes against Iran shortly after President Donald Trump attributed the downing of an American military helicopter off Oman’s coast to Tehran. The incident heightened regional tensions and prompted immediate retaliation. Financial markets reacted with caution, as stock indices continued their downward trend amid ongoing weakness in technology stocks. Investors reduced holdings ahead of a major US inflation report expected later in the week, increasing market sensitivity to economic data.
In other developments, China's inflation figures showed growing divergence across sectors, driven by rising factory prices linked to artificial intelligence investments and global conflicts. Oil prices rose following the new US military actions against Iran, reflecting concerns over supply disruptions. Meanwhile, in Kenya, law enforcement engaged in confrontations with demonstrators, underscoring political instability in the region.