Many Asian stocks sank overnight after Iran’s ballistic missile strike on Israel provoked fears of a wider regional conflict.

Oil prices pushed higher amid concerns the fighting in the Middle East would disrupt supplies.

Investors flocked to safer assets, pushing US Treasury bond yields down in Asian time, while gold hovered near a record high.

The safe-haven dollar traded close to its strongest in nearly three weeks against the pound and the euro.

The Nikkei 225 in Japan was down 2.3pc while the Kospi in South Korea fell 0.8pc. Australia’s S&P/ASX 200 was down 0.2pc.

Chris Weston, head of research at Pepperstone, said: “In the chain of potential market volatility shocks, geopolitics will typically trump economics, corporate earnings, or a central bank response - largely because most market players are poor at pricing risk around these events. 

“While these events typically reconcile in a market positive fashion, the tail risk it can throw up is clearly significant. 

“The situation remains fluid, and the slightest calming or increased aggression in the rhetoric from Israel or Iran could result in a sizeable impact on sentiment in markets.”

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