Jun 13, 2025 (PRISM News via COMTEX) --
Global financial markets were shaken Friday following Israel's surprise military strikes on Iranian nuclear and missile facilities, sparking fears of a broader Middle East conflict and sending oil prices and safe-haven assets soaring.
The Israeli operation, which reportedly killed several high-ranking Iranian military commanders, prompted an immediate surge in Brent and U.S. crude oil prices. Brent crude rose nearly 6% to $71 per barrel, while U.S. oil jumped 8.6% to $74--marking the sharpest intraday gains since Russia's 2022 invasion of Ukraine. Earlier in Asian trading, both benchmarks surged as much as 13%, driven by fears of energy supply disruptions across the volatile region.
In addition to the spike in oil prices, oil and energy related equites saw surges as well with stocks such as RBNE +406%, HUSA +157%, USEG +85% and CGBS +67%.
The geopolitical shock reverberated across markets. Wall Street's major indexes fell, with the Dow dropping 485 points (1.13%), the S&P 500 down 0.65%, and the Nasdaq Composite slipping 0.7%. Volatility surged, as the CBOE VIX--Wall Street's fear gauge--jumped 12%.
Investors fled to traditional safe havens. Gold rose nearly 1.8% to $3,445 per ounce, approaching its all-time high, while the U.S. Dollar and Treasuries also saw heightened demand. The dollar index climbed 0.86%, and the Swiss franc briefly hit its strongest level against the greenback since April. However, long-dated bonds experienced mixed reactions due to inflation concerns from higher oil prices; U.S. 10-year Treasury yields rose to 4.38% after briefly dipping to a one-month low.
"This is a flight-to-safety event," said James Rossiter, head of global macro strategy at TD Securities. "But markets are struggling… the oil-price shock is inflationary and could prompt expectations of a more hawkish Fed."
European and Asian equity markets were also swept up in the selloff. The pan-European STOXX 600 dropped nearly 1%, while major indexes in Japan, South Korea, and Hong Kong each lost more than 1%.
Airline stocks were among the hardest hit. United Airlines fell 5.7%, Delta slid 5.2%, and American Airlines dropped 4.2%. In Europe, shares of British Airways' parent IAG, EasyJet, and Lufthansa all declined over 3.5%. Conversely, defense stocks rallied. Lockheed Martin and General Dynamics each gained about 1% as investors rotated into sectors likely to benefit from increased military activity.
With tensions high and uncertainty mounting, analysts warn that the markets may remain volatile for the foreseeable future, particularly if Iranian retaliation materializes or energy infrastructure is further targeted.
The post PRISM Macro Report: Global Markets Rattle as Israel Launches Strikes on Iran, Oil Soars Amid Geopolitical Shock appeared first on PRISM MarketView.
COMTEX_466341104/2927/2025-06-13T11:22:30
