Global markets are bracing for a volatile open as investors react to Iran's recent attacks, with futures pointing to significant losses across major indices. U.S. stock futures fell sharply overnight, with S&P 500 and Nasdaq contracts down between 1-2% as geopolitical tensions escalate. The uncertainty has triggered a flight to safety, with gold prices surging to six-month highs while oil futures jumped over 4%.

European markets are also under pressure, with FTSE 100 futures down 1.5% and DAX contracts sliding 2%. The sell-off extends to Asian markets where the Nikkei 225 closed 2.3% lower and Hang Seng dropped 2.1%. Investors are particularly concerned about potential disruptions to global energy supplies and the broader economic impact of escalating Middle East tensions.

The market reaction underscores how quickly geopolitical events can roil financial markets. Traders are now pricing in higher volatility across asset classes, with the VIX index jumping 20% in pre-market trading. The situation remains fluid, with markets likely to remain on edge until there's clarity on Iran's next moves and potential responses from Western allies.