Global markets remained on edge on Wednesday as Israeli air strikes on Iranian targets entered a sixth day and U.S. President Donald Trump hinted at possible American involvement. Oil, currencies and equities swung in thin trading: Brent crude initially extended its recent 10 % rally before reversing to $75.31 a barrel, down 1.5 %. Europe’s STOXX 600 slipped 0.36 %, while U.S. equity indexes were little changed, the Dow hovering near 42,246 and the S&P 500 holding record territory. Risk-sensitive assets bore the brunt of the geopolitical turmoil. Bitcoin slid to about $103,000–105,000, its lowest level in more than two weeks, with trading volumes up 19 % and roughly $200 billion wiped from the broader crypto market. Ethereum fell roughly 5–10 % to about $2,500, and most major tokens traded lower amid a sharp rotation toward cash and Treasuries. Currency markets told a similar story. The Mexican peso, which had weakened 0.44 % on Tuesday to 19.00 per dollar, clawed back ground to 18.95 on Wednesday as the dollar rally paused. Analysts said the peso and other high-yielding emerging-market units will remain hostage to headlines from the Middle East and movements in energy prices. Attention now shifts to the Federal Reserve. Policymakers are widely expected to keep the benchmark fed-funds rate unchanged at 4.25 %-4.50 %, but traders will scrutinise Chair Jerome Powell’s remarks and the updated ‘dot plot’ for clues on whether heightened geopolitical risk and firmer oil prices could delay the next rate cut. Bond yields eased ahead of the decision, with the 10-year Treasury around 4.37 %.