
Oil surges, stocks fall on Middle East fears as Israel strikes Iran
HONG KONG: Oil prices soared more than 12 per cent and stocks sank Friday (June 13) after Israel launched "preemptive" strikes on Iranian nuclear and military sites and warned of more to come, stoking fears of a full-blown war.
Investors ran for the hills on news of the attacks and a warning from Tehran that its regional foe faced a "bitter and painful" fate, while US President Donald Trump said a "massive conflict" in the region was possible.
While Tel Aviv said it had struck military and nuclear targets, Iran said residential buildings had been hit.
Israeli Prime Minister Benjamin Netanyahu said in a video statement: "This operation will continue for as many days as it takes to remove this threat.
"We struck at the heart of Iran's nuclear enrichment programme. We targeted Iran's main enrichment facility at Natanz. We also struck at the heart of Iran's ballistic missile programme," he added.
Nuclear scientists "working on the Iranian bomb" had also been hit, he said.
In Teheran, supreme leader Ayatollah Ali Khamenei warned Israel would suffer severe consequences, issuing a statement that said: "With this crime, the Zionist regime has set itself for a bitter and painful fate and it will definitely receive it."
Israeli Defence Minister Israel Katz had earlier cautioned that "a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future".
Trump previously warned that an Israeli attack could be on the cards, telling reporters at the White House: "I don't want to say imminent, but it looks like it's something that could very well happen."
The US leader said he believed a "pretty good" deal on Iran's nuclear programme was "fairly close", but that an Israeli strike on the country could wreck the chances of an agreement.
A US official said there had been no US involvement in the operation.
Still, there are worries the United States could be sucked into the crisis after Iran threatened this week to target US military bases in the region if a regional conflict broke out.
Both main oil contracts, which had rallied earlier in the week on rising tensions, spiked more than 12 per cent -- hitting levels not seen since January -- amid fears about supplies of the commodity.
The rush from risk assets to safe havens saw equity markets across Asia tumble and bonds rally with gold, which popped above US$3,400 an ounce. US and European equity futures were deep in the red.
"The Middle East powder keg just blew the lid off global markets," said Stephen Innes at SPI Asset Management.
"Equity futures are plummeting. Bond yields are sinking. Gold and oil are skyrocketing," he added.
"Brent crude futures are racing toward the mid-$70s range -- but if the Strait of Hormuz, which accounts for 20 per cent of global oil flows, finds itself in the blast radius, you can add another $15 to the bid.
"If Iran holds back, we get a relief bounce. But if missiles start raining down on Tel Aviv or Teheran retaliates with real teeth, we're staring down a scenario that could redefine the macro narrative for the rest of 2025."
Banking giant JPMorgan Chase had warned just this week that prices could top $130 if the worst-case scenario developed.
Market sentiment had already been low after Trump sounded his trade war klaxon again by saying he would be sending letters within the next two weeks to other countries' governments to announce unilateral levies on their exports to the United States.
The "take it or leave it" deal spurred fears he would reimpose the eye-watering tolls announced on April 2 that tanked markets before he announced a 90-day pause. - AFP
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TEHRAN: Israel began feeling Iran's wrath on Friday evening as the Islamic Republic of Iran Armed Forces launched a wave of strikes on Israel. According to the Islamic Republic News Agency (IRNA), the strikes came hours after the Israeli regime, in what Iran described as unprovoked aggression, targeted locations inside Iranian territory, including residential buildings. The Iranian counterstrikes began without warning, and images and footage emerged showing missile after missile penetrating Israel's missile defences and exploding upon impact. Huge fireballs lit up the night sky in Tel Aviv and Jerusalem. Reports said Israel's Ministry of War was hit. Israeli air defence batteries around other specific targets were also taken out before missiles struck the higher-profile sites. The Islamic Revolution Guards Corps (IRGC) said in a brief statement after the strikes began that dozens of Israeli targets, including military sites and airbases, were being hit in pinpoint attacks. It said further details would be provided later. In a second statement issued around midnight, the IRGC said its missile and drone units had targeted Israeli military bases used to launch strikes on Iran, as well as industrial weapons manufacturing and other military facilities deep inside Israel. The statement said intelligence collected — including satellite imagery — confirmed that dozens of ballistic missiles had struck their intended targets. Overnight on Friday, the Israeli regime launched a series of military strikes in and around the Iranian capital, Tehran, as well as other Iranian cities. Simultaneously, anticipating a devastating Iranian response, Israeli Minister for Military Affairs Israel Katz declared a state of emergency across Israel. The Israeli military also carried out targeted strikes against Iran's top military commanders. Chairman of the Chiefs of Staff of Iran's Armed Forces Major General Mohammad Baqeri and Chief Commander of the IRGC Major General Hossein Salami were assassinated in Tehran. Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei appointed new top military commanders on the same day. Just before the Iranian strikes began, Ayatollah Khamenei said in a televised address to the nation that the Israeli regime would not escape retaliation for its attacks on Iran. 'Strong action should be taken — and will be taken,' the Leader said. 'We will show no leniency. Life will undoubtedly turn bleak for them.'


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