Oil prices soar, stocks slide after Israel strikes Iran
iol Rescue teams work outside a heavily damaged building, targeted by an Israeli strike in the Iranian capital Tehran on June 13, 2025. Israel carried out strikes against Iran early on June 13, targeting its nuclear and military sites as well as residential buildings in Tehran, after US President Donald Trump warned of a possible "massive conflict" in the region. (Photo by AFP)
Image: AFP
Oil prices soared and stocks sank Friday after Israel launched strikes on nuclear and military sites in Iran, stoking fears of a full-blown war.
Oil futures rocketed more than 13 percent at one point, reaching the highest levels since January and reigniting worries about a renewed spike to inflation.
Fears of a higher-cost environment sent share prices sliding for a majority of companies across Asia and Europe.
Energy majors jumped, however, as despite a pullback heading into the Wall Street open, crude was still up by around 8.5 percent.
The dollar jumped, while gold -- viewed as a safe haven investment -- was close to its record high of above $3,500 an ounce set in April.
"Global markets are being rattled by an escalation of Middle East tensions," noted Richard Hunter, head of markets at trading group Interactive Investor.
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"Asian markets were the first to react to the news overnight, with (stock market) declines across the board."
Europe followed suit, with almost all the continent's stock indices in negative territory nearing the half-way stage.
Iran called Israel's wave of strikes a "declaration of war", after the Israeli military hit about 100 targets including nuclear facilities and killed senior figures, among them military chiefs and top nuclear scientists.
US President Donald Trump told Fox News he had prior knowledge of the Israeli strikes, which Israel said involved 200 fighter jets.
Trump also stressed that Tehran "cannot have a nuclear bomb".
Iran's supreme leader Ayatollah Ali Khamenei warned Israel it faced a "bitter and painful" fate over the attacks, while the Iranian military said there were "no limits" to its response.
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