Stock markets experienced significant volatility as tensions in the Middle East escalated following Iran's missile strike on Israel. Major indices closed lower, with investors reacting to geopolitical risks and rising oil prices. Oil prices surged by over 2%, prompting a rally in defense stocks, as reports indicated fears of supply disruptions. Asian markets displayed a mixed response, with Hong Kong shares advancing while Tokyo's stocks fell. Treasury yields also rose amidst the tumult, as market participants navigated the uncertainty surrounding the conflict. Analysts warn that this escalation could lead to increased gas prices in the U.S. and further volatility in global financial markets.