Company Interview / the open: Middle East conflict intensifies 🚨 ASX to drop

Israeli and US forces have continued to strike targets across Iran, while Iran has launched retaliatory strikes on Gulf states, seeing equity markets plunge and energy prices soar. The local market is set to fall heavily at the opening with ASX futures down 1.3%. 

Wall Street's main indices tumbled at the opening before recovering but the S&P 500 has still hit its lowest level in more than two months with the market worried that the US is being pulled deeper into the conflict than investors had expected. 

Four days into the war in the Gulf, President Trump has said that the US military had struck numerous Iranian naval and air targets, saying that "just about everything has been knocked out.” Trump has said if necessary, the US navy will begin escorting tankers through the Strait of Hormuz. 

Oil prices have surged further, and gold has been weighed by a stronger US dollar and dimming prospects for rate cuts on rising inflation concerns. The US dollar index is up 0.8% on the day, whilst the Australian dollar has slipped to US70.4 cents.