Global markets reeled after the United States and Israel launched Operation Shield of Judah, a pre-emptive strike on Iran that killed Supreme Leader Ayatollah Ali Khamenei. Iran retaliated with missile strikes across the Middle East, hitting targets in Dubai, Riyadh, Abu Dhabi, Bahrain and Kuwait. The coordinated attack eliminated key Iranian military leaders including Defense Minister Aziz Nasirzadeh and IRGC Commander Mohammad Pakpour.

Despite the dramatic escalation, some strategists see limited market fallout. Vital Knowledge analyst Adam Crisafulli noted that recent history shows equities typically absorb geopolitical shocks. Barclays Global Head of Research Ajay Rajadhyaksha offered a more nuanced view, suggesting Iran's missile barrage may be aimed at domestic audiences rather than signaling sustained military action. He believes Iran lacks the capability for a prolonged campaign.

Rajadhyaksha warned the risk backdrop has shifted, with tail risks of broader conflict higher than in recent years. He advised investors to resist buying any immediate market weakness, recommending they wait for a more substantial pullback. "We would recommend not buying any immediate dip – the risk-reward doesn't seem compelling