Global markets reacted after Israeli airstrikes on Iranian nuclear sites, sparking fears of wider conflict. Oil prices surged, with Brent crude jumping by up to 13%, while gold and the dollar also rose, according to Bloomberg. Stock futures fell as investors shifted to safe-haven assets. Energy and defense stocks climbed, while travel stocks dipped. They write:
A tempered rush to safety swept global markets after Israeli airstrikes on Iranian nuclear targets, with oil taking the heaviest blow as traders stayed on edge for signs of an escalating confrontation. Stock futures were down 0.9% after earlier tumbling twice that.
Brent crude gained 7.6%, having earlier surged as much as 13% in the biggest intraday jump since March 2022. Gold rose 1.2% to the highest in more than a month.
The dollar rebounded 0.5% from Thursday’s three-year low. US Treasuries were little changed, with the yield on the 10-year note at 4.35%. […]
“This goes against what central banks were expecting for oil prices and could potentially change their scenario by heating up inflation and slowing growth,” said Alexandre Hezez, chief investment officer at Group Richelieu.
Read more here.
