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.

The ripple effect of the back-to-back strikes between Israel and Iran were seen in the U.S. stock market on Friday. CBS News MoneyWatch correspondent Kelly O'Grady has more.

The latest military attack on Iran by Israel has tanked stock markets and pushed up oil prices, but most asset managers think the impact on the U.S. economy and markets will be temporary as long as the conflict does not escalate further.

The International Energy Agency tweaked its global oil demand forecast, now expecting demand to rise by 720,000 barrels a day this year versus 740,000 barrels previously, citing weak second-quarter deliveries in the U.

The ongoing Israel-Iran conflict could trigger global instability, spike oil prices, disrupt trade routes, increase inflation, and strain diplomatic relations, forcing countries like India into comple

Stock futures were higher on Sunday as investors weighed the impact of the escalating Israel-Iran conflict that shows no signs of any potential off-ramps ahead. Oil prices rallied after Israel attacked key areas of Iran’s energy infrastructure over the weekend,

The escalating tensions between Iran and Israel are also sending shockwaves through global stock markets, with India’s benchmark Sensex closing 573 points lower on Friday.

Iranian media report new Israeli attacks on the west of the country on Monday, after Iranian strikes broke through Israel's iron Dome defences overnight.

President Donald Trump abruptly announced that he would leave the G7 summit a day early and return to Washington shortly after posting an ominous social media message that appeared to suggest more carnage in Iran.