Global markets tumbled Wednesday as investors reacted to escalating tensions between Iran and the U.S.-Israel alliance. S&P 500 futures dropped 1.22% in pre-market trading, with European stocks falling even harder - the STOXX Europe 600 plunged 1.76% and the FTSE 100 slid 0.63%. Asian markets also suffered, with Japan's Nikkei 225 closing down 1.35% and South Korea's KOSPI falling 1%.

Oil prices spiked 13% as the Strait of Hormuz closure threatened to disrupt 15% of global oil supply and 20% of liquefied natural gas. Gold surged to new all-time highs as investors fled to traditional safe havens. The dollar strengthened nearly 1% against major currencies, driven by oil contracts typically settled in U.S. currency. Defense stocks emerged as early winners, with BAE Systems jumping 6% in London and Rheinmetall AG climbing 2% in Frankfurt.

Some Wall Street strategists see opportunity amid the chaos. Wells Fargo analysts pointed to S&P 500 gains of 16% and 14% following the first and second Gulf Wars, suggesting investors might profit by buying the dip. JPMorgan Chase strategists warned this conflict poses greater macroeconomic risk than recent military actions, comparing it to Russia's 2022 Ukraine invasion in its potential to disrupt global energy markets and supply chains.