The conflict in the Middle East is intensifying, causing stock markets in the region to decline.

After Israel launched airstrikes against Iran, the Israeli stock market fell on the first day of trading. The Saudi benchmark stock index also dropped due to increased concerns about a wider conflict in the region. The Tel Aviv Stock Exchange 35 index opened down 1.5% on Sunday, following a 1.5% drop the previous week. The Saudi stock market index fell by 2.5%. The Egyptian EGX 30 index dropped by 7.7%, marking the largest decline in over a year. These markets were closed on Friday. Israel and Iran continued to exchange fire into the third day. On Friday, as hostilities escalated, Israel's Shekel saw its largest drop in 11 months, while oil prices surged by 7%. The worsening conflict has also sent shockwaves through financial markets, prompting investors to flock to traditional safe-haven assets such as gold and the US dollar.