Global investors may be underpricing the impact of a conflict between Israel and Iran, market watchers warned on Monday, as stocks rallied despite escalating warfare in the Middle East. The two regional powers continued trading fire on Monday, marking the fourth consecutive day of fighting since Israel launched airstrikes against Iran last week.

Wall Street has all but dismissed the threat of a shock from the conflict. But the danger hasn’t completely passed, and other dangers are building.

Indian stock markets opened on a flat note in green on Monday, reflecting cautious investor sentiment amid ongoing tensions between Iran and Israel.

As Israel and Iran exchanged more attacks, stock markets mostly rose even as worries remained about possible oil supply interruptions.

Israel's strike on Iran sparked turmoil in financial markets ... Oil spikes The price of crude oil surged as market participants braced for potential supply disruptions in the Middle East.

Earlier on monday, the IDF said it had identified missiles fired from Iran towards Israel. Amid the rising conflict, an expert has predicted the impact on the naira.

Investors were on edge ahead of markets reopening late on Sunday, gripped by anxiety over nationwide protests against President Donald Trump and the escalating threat of a sweeping conflict in the Middle East.

Oil prices surged, stocks dropped and investors flocked to safe havens like gold on Friday after tensions between Israel and Iran escalated, stoking concerns of a broader conflict in the region.