Stock markets slide and oil prices surge after Israel attack on Iran
Stock markets worldwide took a hit and oil prices soared following Israel’s military strike on Iran. The attack, which targeted Iranian nuclear facilities, scientists, and military leaders, led to a significant increase in oil prices. U.S. benchmark crude oil surged by 7.3% to $72.91 per barrel, while Brent crude, the international standard, rose by 6.7% to $74.15 per barrel.
The escalation of tensions between Israel and Iran sent shockwaves through global financial markets. Prior to the opening of U.S. trading, S&P 500 futures contracts dropped by 1.1%, while Dow Jones Industrial Average and Nasdaq Composite futures fell by 1.1% and 1.4%, respectively. In Asia, markets experienced losses with Tokyo’s Nikkei 225 falling by 0.9%, the Kospi in Seoul losing 0.9%, and Hong Kong’s Hang Seng dropping by 0.6%. Similarly, European markets also saw declines, with Germany’s DAX falling by 1.4%, France’s CAC 40 shedding 1%, and Britain’s FTSE 100 slipping by 0.5%.
Analysts warned of the potential impact on the global economy, particularly through higher oil prices. While there was no immediate disruption to oil production or exports from Iran, concerns arose about the possibility of Iran blocking the crucial Strait of Hormuz, a key shipping route for global energy supplies.
The Associated Press contributed to this report, providing valuable insights into the unfolding situation between Israel and Iran. As tensions continue to escalate in the region, global markets remain on edge, closely monitoring developments that could have far-reaching implications for the economy and energy markets.
Alain Sherter, a senior managing editor with CBS News, covers business, economics, money, and workplace issues for CBS MoneyWatch. His expertise and in-depth analysis provide valuable perspectives on the impact of geopolitical events on financial markets and the global economy.
