Stock markets dipped in response to Israel’s attack on Iran on June 13. Major U.S. indices are reacting to the news with the Dow futures down 1.41%, S&P futures down 1.55%, and Nasdaq futures losing 1.73% in early morning pre-trade on Friday.
Reacting to the tensions are commodities like oil, where prices shot up more than 9% on Friday, with the WTI crude index up by 8.73% at the time of reporting. This is the highest spike in oil prices in the past five months, as per a Reuters report. The last time Brent crude touched $77.62 was on January 21st.
Oil on the boil
A further flare-up in oil prices would be concerning as Iran occupies a critical position on the northern side of the Strait of Hormuz, through which a substantial portion of oil imports pass from producers in the Middle East. As a retaliatory move, Iran could restrict passage through this strait. Iran exports a huge portion of its oil to China through this route, its biggest buyer, and almost all of its oil passes through the strait, according to The New York Times.
Gold: The safe haven
Meanwhile, Gold, which is typically a safe haven, is up 1.32%, at $3,428.28 an ounce. In times of conflict, investors typically look for safer investments, shifting a portion of their funds into gold. Gold prices have surged over the past year, breaking multiple key resistance levels and reaching new all-time highs in April 2025. Bullion has gained more than 3.5% so far this week.
Markets volatile with rising tensions
Israel launched strikes early Friday aimed at Iran’s nuclear facilities, ballistic missile factories, and military commanders. Titled Operation Rising Lion, the move was intended to disrupt Iran’s nuclear weaponization program and plans to develop an atomic bomb.
The chief of Iran’s Islamic Revolutionary Guards, Hossein Salami, was killed in the strikes, according to Iranian state reports. The chief of staff of Iran’s Armed Forces, Major General Mohammed Bagheri, was also killed, as per Iranian State TV. The attack also targeted a central nuclear enrichment facility in Natanz and nuclear scientists.
The Supreme Leader of Iran, Ayatollah Ali Khamenei, has swiftly responded in light of the strikes, vowing retaliation for the attacks while Iran’s Armed Forces spokesperson said the U.S. and Israel would pay.
U.S. Senator Mark Rubio has put out an official statement recorded on the White House official X account, stating that the U.S. was not involved in the attacks and that the U.S. administration will take all necessary steps to protect its forces.
