Geopolitical risks may be the biggest threat to global markets, the Bank of England (BoE) warned on Wednesday.

"Global vulnerabilities remain material, as does uncertainty around the geopolitical environment," the BoE said. "Markets remain susceptible to a sharp correction."

The BoE published its Financial Policy Committee Record a day after Iran launched at least 180 ballistic missiles at Israel. The barrage of missiles has increased fears of wider war in the Middle East.

A map showing the sirens sounded across Israel as the barrage began Source: msn.com

Concerns about an escalation in Mideast violence increased after Israel killed Hezbollah's...