US financial markets fell sharply as the war with Iran intensified, sending oil prices higher and gold to its worst weekly performance in four decades.

The Russell 2000 entered correction territory, down 10.3% from its January peak, while the Dow, S&P 500, and Nasdaq all posted multi-month lows, erasing six months of gains.

Treasury yields surged, with the 10-year hitting 4.39%, as investors sold bonds amid inflation concerns and uncertainty over the conflict’s duration.

Brent crude rose above $112 per barrel, the highest since July 2022, while US crude topped $98, reflecting fears of energy supply disruptions, CNN has reported.

Analysts warned that markets may not have found a bottom yet, with rising interest rates and the ongoing Middle East war weighing on stocks, bonds, and commodities alike.