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By Kate Plummer
Senior US News Reporter
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Markets around the world responded swiftly on Friday after Israel launched large-scale strikes on Iran, reportedly targeting nuclear facilities and missile sites.
The operation led to a steep drop in U.S. stock futures, surging oil prices, and a rally in traditional safe-haven assets like gold and the U.S. dollar. The strikes, which Israel described as a preemptive move to curb Iran's nuclear program ambitions, escalated investor uncertainty and rattled global markets.
Why It Matters
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The surge in oil prices risked fueling inflation just as central banks weighed future interest rate paths, and the selloff in equities mirrored broad concerns about conflict in the Middle East disrupting energy flows.
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What To Know
After the attack—which Iran's foreign minister said was "tantamount to a declaration of war" Iranian state media reported—some commodities increased in value. The price of Brent crude oil increased by more than 10 percent, reaching its highest level since January, before easing slightly to $73.12 a barrel, according to multiple reports.
Gold rose to $3,416 per ounce, close to highs it reached in April.
Meanwhile, stocks crashed. The London FTSE 100 fell 50 points on opening on Friday. Dow futures dropped 1.3 percent. U.S. stock futures fell by 1.5 percent and European shares fell by 1 percent.
The commander-in-chief of Iran's Revolutionary Guard, General Hossein Salami, was killed in Israel's strike, state media reported local time Friday.
U.S. Secretary of State Marco Rubio issued a statement saying that U.S. personnel were not involved in the operation and warned Tehran against retaliatory measures against U.S. positions in the region.
Iranian Defense Minister General Aziz Nasirzadeh previously warned that Iran could attack U.S. bases if nuclear talks break down with President Donald Trump's administration.
What People Are Saying
Israel Defense Forces spokesperson BG Effie Defrin, in a recorded video statement on X, formerly Twitter, in part: "For years, the Iranian regime has called for the destruction of the state of Israel. Planning and advancing concrete military plans to do so.
"Over the past few months, intelligence has shown that Iran is closer than ever to obtaining a nuclear weapon. This morning, the IDF began preemptive and precise strikes targeting the Iranian nuclear program. In order to prevent the Iranian regime's ability to build a nuclear bomb in the immediate timeframe."
Trump posted to Truth Social on Thursday: "We remain committed to a Diplomatic Resolution to the Iran Nuclear Issue! My entire Administration has been directed to negotiate with Iran. They could be a Great Country, but they first must completely give up hopes of obtaining a Nuclear Weapon. Thank you for your attention to this matter!"
Jochen Stanzl, the chief market analyst at CMC Markets told The Guardian: "Investors are now grappling with the prospect of two wars and an ongoing trade conflict, prompting a reassessment of risks.
"Gold prices are heading towards record highs, equities are under pressure, and the dollar is rising once again. The events of the past few hours have sparked a broad risk-off movement among investors."
What Happens Next
It remains to be seen whether Iran will respond to the strikes.
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