Overview
- U.S. airstrikes on Iran on July 8 and Iran’s retaliatory strikes followed President Trump’s public declaration that the temporary ceasefire "is over," prompting an immediate risk-off reaction in markets.
- That initial shock sent Brent toward the mid-$70s and lifted the 10-year U.S. Treasury yield to about 4.59%, which pressured equities and raised near-term inflation worries.
- Over the next 24–48 hours markets calmed as semiconductor and AI-infrastructure names—led by gains in Micron, SK Hynix and related chip suppliers—recovered losses and drove U.S., Asian and Indian equities higher.
- Domestic corporate news amplified local rallies: Tata Consultancy Services’ June-quarter report and guidance helped India’s Sensex and Nifty rebound strongly, while SK Hynix’s U.S. ADR activity supported South Korean markets.
- Analysts say the episode leaves oil and yields vulnerable to further swings because of tanker risks in the Strait of Hormuz and Washington’s revocation of Iran oil waivers, creating a durable geopolitical upside risk to inflation and policy that markets will watch closely.