Stock markets in both the US and Iran are experiencing a decline following the Iranian missile strikes on US forces in Iraq.

Early Wednesday morning showed a drop in US futures as investors moved towards safer assets like gold. The S&P .EScv1 saw a 1.7% decrease, and US treasury yields reached a one-month low. E-minis at the S&P 500 fell by 0.11%, and e-minis at the Nasdaq 100 dropped by 0.24%. The decrease in stock values was evident globally. Japan’s Nikkei 225 went down by 1.3%, and Hong Kong’s Hang Seng decreased by 0.8%.

While stocks faced a decline worldwide, both oil and gold prices surged. Oil prices went up by 5% on Monday morning, and Brent Crude reached $69.21 per barrel. Gold prices saw a 2% increase as investors sought refuge in safe-haven assets.

The situation in Iraq is still unfolding as US officials await an assessment of the aftermath of the twelve Iranian missiles launched at US targets in Iraq. Iran stated that the strikes were not intended to instigate a war but to “conclude” its retaliation for the killing of Soleimani.

Any potential conflict between the US and Iran could significantly impact shipping in the Strait of Hormuz, which is the world’s busiest oil shipping route. Oil from Iran, Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates passes through the strait, accounting for approximately a fifth of global oil shipping.