Global financial markets are experiencing significant turmoil as tensions in the Middle East escalate, particularly due to the ongoing Iran conflict. Oil prices have surged, with Brent crude briefly exceeding $119 per barrel, prompting sharp declines in both stock and bond markets. Investors are reacting to the uncertainty surrounding U.S.-Iran talks and escalating military actions that threaten energy infrastructure. European shares are also falling, intensifying concerns over inflation as energy costs rise. Analysts warn of a potential protracted energy shock that could further impact global markets.