Reports coming out of Iraq of fierce fighting in capital Baghdad.
- Seraya Al-Islam militias (a paramilitary organization led by Shitte Cleric, Muqtada Sadr) machine gun fire, Iraqi security forces responding
- explosions reported also
Media report (CNN) here for more.
In summary, this is a manifestation of ongoing Iran-Iraq tensions.
For markets, such fighting in the Middle East leads to fears for oil supply and thus impacts via higher prices at the margin. To state the obvious.