Asia markets slide on growing fears of Middle East war; Singapore share index down 1.3%

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Asia markets slide on growing fears of Middle East war; Singapore share index down 1.3%
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A deadly strike on a hospital in Gaza has ratcheted up tensions, with some warning a full-blown war is increasingly likely. Read more at straitstimes.com.

A deadly strike on a hospital in Gaza has ratcheted up tensions, with some warning that a full-blown war is increasingly likely, roiling markets.

With Israeli Prime Minister Benjamin Netanyahu building up a huge force ahead of an expected land incursion into Gaza, Iran has warned of a possible pre-emptive strike and called for an oil embargo against Tel Aviv. The tragedy ratcheted up tensions and saw Lebanon’s Iran-backed Hezbollah movement calling for a “day of rage”.

“The window for a diplomatic off-ramp to avert a wider war in the Middle East appears to be closing,” said RBC Capital Markets analyst Helima Croft. Risk aversion among traders was increased by concerns that the Federal Reserve would hike interest rates again, or at least keep them elevated for an extended period.

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