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Stocks extended their selloff as tensions between the US and Iran escalated further, driving a broad risk-off move across assets. Asian equities fell 3.7%, entering correction territory, while US futures dropped ~0.8% and European futures pointed sharply lower.

Soaring oil prices are raising inflation concerns, as key energy infrastructure in the Middle East has been damaged. Investors are worried about the prolonged economic impact of the war.

Global equities declined for a second consecutive day as escalating conflict in the Middle East — particularly attacks on critical energy infrastructure — pushed oil prices sharply higher and heightened fears of renewed inflation.