A key concern for markets would center around the potential impact of the developments in the Middle East on oil prices and thus on inflation.

Oil prices surged and Asian markets traded lower on Monday on concerns of disruption to energy markets after US air strikes on Iran's nuclear facilities. "An oil price shock would create a real negative impact on most Asian economies" as many are big net energy importers,

Oil prices may change after the United States’ involvement in the Israel-Iran war. Some experts warn that possible retaliation by Iran could interrupt the influx of crude oil, which may harm global economies.