Global stocks slid while investors took cover in safe havens as financial markets were on edge over the possible entry of the United States into the week-old Israel-Iran air war.

TSX futures followed sentiment lower.

U.S. stock markets are closed today for the Juneteenth holiday.

In Canada, investors are getting results from Empire Co. Ltd.

President Donald Trump kept the world guessing about whether the United States will join Israel’s bombardment of Iranian nuclear sites, telling reporters “I may do it. I may not do it.”

“Market participants remain edgy and uncertain,” said Kyle Rodda, senior financial markets analyst at Capital.com.

“Speculation remains rife – fed probably strategically by the Trump administration – that the U.S. will intervene, something that would mark a material escalation and could invite direct retaliation against the U.S. by Iran,” he said.

“Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and probably economic growth.”

Overseas, the pan-European STOXX 600 was down 0.39 per cent in morning trading. Britain’s FTSE 100 fell 0.22 per cent, Germany’s DAX dropped 0.39 per cent and France’s CAC 40 gave back 0.67 per cent.

In Asia, Japan’s Nikkei closed 1.02 per cent lower, while Hong Kong’s Hang Seng tumbled almost 2 per cent.

Oil prices rose after Israel and Iran continued to exchange missile attacks overnight and U.S. President Donald Trump’s stance on the conflict kept investors on edge.

Brent crude futures gained 0.55 per cent to US$77.06 a barrel. West Texas Intermediate (WTI) crude for July advanced 0.7 per cent to US$75.68 a barrel.

There is still a “healthy risk premium baked into the price as traders await to see whether the next stage of the Israel-Iran conflict is a U.S. strike or peace talks,” Tony Sycamore, market analyst at IG, said in a client note.

In other commodities, spot gold was steady at US$3,369.79 an ounce. U.S. gold futures fell 0.6 per cent to US$3,387.30.

The Canadian dollar weakened against its U.S. counterpart.

The day range on the loonie was 72.83 US cents to 73.07 US cents in early trading. The Canadian dollar was up about 1.05 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, was little changed at 98.92.

The euro slipped 0.07 per cent to US$1.1476. The British pound edged up 0.01 per cent to US$1.3423.

In bonds, the yield on the U.S. 10-year note was flat at 4396 per cent as Treasury markets are closed for the Juneteenth holiday.

The Swiss National Bank cut its benchmark interest rate to zero, citing falling inflation, ahead of the Bank of England’s announcement later this morning, when it is expected to keep its rate unchanged.

(8:30 a.m. ET) Canadian construction investment for April.

With Reuters and The Canadian Press