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US stock futures sank on Friday as Israel’s attack on Iran shook global markets, leading oil prices to spike after Iran reportedly described the strike a “declaration of war.”
Dow Jones Industrial Average futures (YM=F) tumbled roughly 1.1% as investors lost their appetite for riskier assets. S&P 500 futures (ES=F) dropped 1%, while those attached to the tech-heavy Nasdaq 100 (NQ=F) dived 1.3%.
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On Thursday night, Israel conducted what it called a “preemptive strike” against Iran, citing fears over development of nuclear weapons in Tehran. Crude oil (CL=F) prices soared as much as 13% as the strikes hit the third largest producer in OPEC+. The safe-haven asset of gold (GC=F) jumped 1%.
Israel’s prime minister, Benjamin Netanyahu, has vowed that the operation against Iran’s nuclear and military facilities would continue “for as many days as it takes,” stoking fears of escalation.
In response, Iran described the strikes as a “declaration of war” in a letter to the United Nations, AFP reported. It has also launched a drone attack on Israel, seen by some as a precursor to a more severe missile onslaught.
President Trump urged Iran to “make a deal” over its nuclear program to avert further conflict, in a post to social media. “JUST DO IT, BEFORE IT IS TOO LATE,” he wrote.
Iran has threatened to target US assets in the Middle East as part of its “severe response”. Earlier, Secretary of State Marco Rubio said Israel took “unilateral action” with no US involvement, as he warned Iran against targeting US interests and personnel.
The dramatic developments came after a day where stocks crept higher despite questions around Trump’s domestic agenda, as he hinted at steps that could rattle markets. The president floated hiking auto tariffs just a day after he said he would impose unilateral tariff rates on countries within two weeks.
Read more: The latest on Trump’s tariffs
Separately, he reiterated his call for a jumbo rate cut from the Federal Reserve, adding that he “may have to force something” amid easing inflation. Analysts expect the central bank to hold rates steady next week.
LIVE 6 updates
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Good morning. Here’s what’s happening today.
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Trump weighs in on Israel strikes, urges Iran to ‘make a deal’: ‘JUST DO IT’
President Trump weighed in early Friday with his first comments on the escalating situation in the Middle East.
On Truth Social, he posted a screed urging Iran to “make a deal.”
The only event on Trump’s public schedule today is national security council meeting at 11 a.m. ET.
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Trending tickers: Energy and defense stocks
Here are some top stocks trending on Yahoo Finance in premarket trading:
Israel launched a surprise strike on an Iranian military site overnight. The move raised fears of wider conflict in the region. As a result, energy stocks rose in premarket trading.
Diamondback Energy, Inc. (FANG) stock was up 6%, and Occidental Petroleum Corporation (OXY) rose 5%.
Defense stocks also climbed before the bell as investors reacted to Israel’s strike on Iran.
RTX Corporation (RTX) was up 6%, and Lockheed Martin Corporation (LMT) rose 4%.
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Cryptocurrencies fall as all markets shaken by Israel’s attack on Iran
Bitcoin and other cryptocurrencies fell as the Israeli attack on Iran shook global markets. Both of the two major currencies, bitcoin and ether, held significant losses.
Bloomberg reports:
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Asian markets open lower following Israeli attack on Iran
Asian markets sank late Thursday evening as an Israeli attack on Iran shook global markets, leading to widespread sell-offs as investors sought safer assets.
Reuters reports:
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Israel attacks Iran in major escalation, leading to stock sell-off while oil and gold surge
Israel has attacked Iran in the largest recent escalation of tensions in the region. Markets reacted swiftly to the news, with the three major gauges all plunging over 1%.
Gold (GC=F) and oil prices surged with investors scurrying to safer assets, hoping to avoid the worst of a financial shake up.
Iran is the third largest producer of oil within OPEC+, and the attack has caused prices to surge over 5%. Brent crude (BZ=F) futures jumped 5.5% to $73.27 a barrel while West Texas Intermediate surged 5.9% to $72.05 a barrel.
Gold (GC=F) popped 0.9% to $3,434.40 an ounce.
A retaliatory attack from Iran against Israel is expected imminently, with a “special situation” being declared by the Isreali defense minister.
US Secretary of State Marco Rubio said Israel took “unilateral action”, clarifying that the US was not involved in the strikes ahead of a sixth meeting between the US and Iran on Sunday.
