TOKYO -Asian shares and bond yields sank on Friday while safe-haven currencies, gold and crude oil jumped after reports of a sharp escalation in Middle East hostilities.
ABC News cited a U.S. official in reporting Israeli missiles had hit a site in Iran, while Iran's Fars news agency said explosions were heard at an airport in the city of Isafahan. That, in turn, was in response to a suspected Israeli strike on its embassy compound in Syria that killed senior Iranian military commanders."Markets will be very worried that this is the start of a tit-for-tat escalation which could create huge volatility in the Middle East."
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