On Monday (August 5), gold plummeted to $2,413, then quickly rebounded to $2,430, and Bitcoin fell below $58,000. Japanese government bond futures triggered the "circuit breaker" mechanism, and Japan's Topix and Nikkei indexes fell 20% from their July highs. Israel is preparing for an Iranian attack, and a regional alliance led by the United States is being formed, and an aircraft carrier has been sent to stop missiles.

As the United States sends defense reinforcements to the Gaza Strip and urges a ceasefire, Israel is preparing for possible attacks by Iran and local militias in retaliation for the assassinations of Hezbollah and Hamas officials.

"Israel is engaged in a multi-front war against the Iranian axis of evil, we are striking at every branch of Iran with all our might, and we are ready for any scenario, both offensively and defensively," Israeli Prime Minister Benjamin Netanyahu said at the start of a cabinet meeting on Sunday.

The United States is sending a fighter squadron to the region and stationing an aircraft carrier nearby to help Israel, while also pressing Netanyahu to redouble efforts to negotiate a ceasefire in Gaza to prevent an escalation in the nearly 10-month-old war.

Netanyahu said the problem was that Hamas kept changing its demands. Others said Israel did the same, making it harder to reach a deal.

Leaders of both Iran and Hezbollah have vowed to respond to last week's killings in Beirut and Tehran, saying terrorists have crossed a red line and that attacks are imminent.

Israeli officials say any upcoming attacks could come simultaneously, possibly from Lebanon's Hezbollah, Yemen's Houthi rebels and Iran itself. Iran first fired more than 300 missiles at Israel in April after Israel killed two Iranian generals in Syria, almost all of which were shot down by Israel and the U.S.-led coalition in the region.

US Deputy National Security Advisor Jon Finner called on both sides to "return to the negotiating table."

US media warned that Iran is determined to strike back at Israel against Arab diplomats, and Iran may launch missiles at Israel within a few days. The Israeli army is officially preparing to fight against Iran's evil axis on multiple fronts, and the United States and several European countries have issued travel warnings.

Italy's Foreign Ministry said in a statement that Group of Seven foreign ministers expressed concern in a video call on Sunday about the risk of a wider crisis in the region. U.S. Secretary of State Antony Blinken discussed "the urgent need for de-escalation in the Middle East" with other foreign ministers, State Department spokesman Matthew Miller said.

The United States, Britain, Canada and other countries have urged their citizens to leave Beirut, and France has also asked its citizens to leave Iran.

Tens of thousands of Israelis are stranded abroad as several foreign airlines, including Delta, United and Lufthansa, have suspended flights to and from Israel due to fears of being caught in the crossfire. The national carrier, El Al, is trying to increase flights to bring Israelis home. There are also rumors that ships will be sent to help Israelis return home.

It is reported that Japanese government bond futures triggered the circuit breaker mechanism.

Japanese stocks plunged into a third day as weak U.S. jobs data dealt another blow to global investor confidence, which was already fragile due to a stronger yen, rising interest rates and geopolitical tensions in the Middle East.

In early Tokyo trading, the Topix and Nikkei 225 indexes fell more than 7%, with losses exceeding 20%, foreshadowing the advent of a bear market. The three-day decline is the biggest since the 2011 tsunami and Fukushima nuclear meltdown.

All 33 of the Bank of Japan’s industry sectors have fallen since the central bank raised interest rates on July 31, triggering a surge in the yen and casting a shadow on the earnings outlook for exporters. Even insurance companies and banks, which were expected to benefit from the rate hike, have become the biggest losers since the Bank of Japan’s rate hike as global stock markets slumped.

Signs of a weakening U.S. economy sparked a sharp sell-off on Wall Street and a plunge in Treasury yields on Friday, with nonfarm payrolls increasing by 114,000 in July, one of the weakest readings since the pandemic, with job growth revised down in the first two months. The unemployment rate unexpectedly climbed to 4.3% for the fourth straight month, raising concerns about a closely watched recession indicator.

Foreign investors, once a major force behind Japan’s stock market rally, sold a net 1.56 trillion yen, or $10.7 billion, of Japanese cash stocks and futures in the week ended July 26, according to Japan Exchange Group data. The Topix fell more than 5% during that period, its biggest drop in four years.