Heightened tensions in the Middle East
On June 13, 2025, Israel initiated a significant military operation, “Operation Rising Lion,” targeting Iran’s nuclear and military infrastructure, resulting in the deaths of key Iranian military leaders. In retaliation, Iran launched over 100 drones towards Israel, all of which have apparently been shot down, escalating regional tensions and prompting widespread airspace closures in the region.
This escalation has led to substantial market volatility: Brent crude oil prices initially surged over 12%, exceeding $77.00 per barrel, due to fears of supply disruptions through the Strait of Hormuz.
The gold price also spiked to a near two-month high at $3,444.50 per troy ounce, as investors sought safe-haven assets amid the uncertainty.
Global stock markets reacted negatively, with significant declines across major indices.
Key technical levels to watch on European and Asian stock indices
The 23 May low technically is the line in the sand for major global stock indices as a daily chart close below these lows could trigger a deeper correction in the past few months strong bull market.
So far, only the German DAX 40 futures index hit this level in pre-market trading before bouncing off it. The DAX 40 cash index is currently testing and trying to bounce off its major 23,476-to-23,275 support zone which consists of the early March highs and late May lows. While it holds, the medium-term uptrend is deemed to be intact.