Stock market today: Dow, S&P 500, Nasdaq futures sink as Israel strike on Iran sends oil soaring
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 1.2% as investors lost their appetite for riskier assets. S&P 500 futures (ES=F) also dropped 1.2%, while those attached to the tech-heavy Nasdaq 100 (NQ=F) dived 1.5%.
On Thursday night, Israel conducted what it called a "preemptive strike" against Iran, citing fears over development of nuclear weapons in Tehran. Explosions erupted across the Iranian capital, reports said. 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 has described the strikes as a "declaration of war" in a letter to the United Nations, AFP reported, after it 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. 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.
Read more: The latest on Trump's tariffs
Overall, stocks have edged up this week as a trade deal between China and the US, as well as unexpected signs of softening inflation, boosted investor sentiment.
On Friday, Wall Street will get insight into how consumers are faring amid tariff uncertainty with the latest University of Michigan survey.
Next week, Wall Street's attention will shift to the Fed with policymakers set to issue their next decision on interest rates on Wednesday. Analysts expect the central bank to hold rates steady.
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:
Read more here.
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:
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.
Read more here.
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:
Read more here.
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:
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.
Read more here.
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The Hill
22 minutes ago
- The Hill
How Israeli strikes dealt a serious blow to Iran's nuclear ambitions
Israel's sweeping attack across Iran struck at the heart of Tehran's nuclear program, delivering a blow to the country's ability to enrich uranium and potentially setting its nuclear ambitions back by months or years. As well as killing key military figures and nuclear scientists, the Israeli strikes destroyed part of a plant that was enriching uranium to levels far beyond the requirements for nuclear-fueled power stations. The attacks also destroyed backup power for the underground section of the plant, potentially damaging more sensitive equipment. Iran's nuclear program has progressed rapidly since 2018, when the U.S. withdrew from a deal to limit Tehran's capacity to enrich uranium, which is necessary to build a nuclear weapon. Iran maintains that its program is peaceful, but the head of the International Atomic Energy Agency has repeatedly warned that the country has enough enriched uranium to make several nuclear bombs if it chose to do so. Nuclear regulators said the assault was unlikely to lead to increased levels of radiation, even at the site where part of the fuel-enrichment plant was destroyed. Here's a closer look at the attack and its likely effects on Iran's nuclear efforts. Israel killed top military figures and nuclear scientists and destroyed part of a key enrichment site. There is 'no question' it did substantial damage, said Fabian Hinz, an expert on Iran's nuclear program at the International Institute of Strategic Studies in London. David Albright, a nuclear weapons expert, speculated that the initial wave of attacks could set back any Iranian attempt to develop a nuclear weapon by about a year. A key question, Hinz said, is whether Israel also targeted suppliers of specialist components such as centrifuges and subcontractors. Israel's strategy appears to be to 'destroy the brains' behind the program and 'as much equipment as possible,' said Albright, who agreed that Israel has potentially done a 'tremendous amount of damage' to the program. Israel is widely believed to be behind a series of attacks in recent years that targeted Iranian nuclear scientists and sabotaged nuclear facilities. Hinz suggested a key Israeli goal was to undermine Iran's ability to make centrifuges, which are critical for enriching uranium. Uranium enrichment is a key component of building a nuclear weapon, but weapons also require detonators and a means of delivery, like missiles. Iran has two uranium-enrichment sites, and the country said Wednesday that it has built and will activate a third enrichment facility. On Thursday, Israel struck Iran's main and oldest facility in Natanz, 220 kilometers (135 miles) southeast of Tehran, which was protected by anti-aircraft batteries, fencing and Iran's paramilitary Revolutionary Guard. The IAEA's chief, Rafael Grossi, told an emergency meeting of the U.N. Security Council on Friday that the above-ground part of the plant where uranium was enriched up to 60% was destroyed, along with electrical infrastructure, including a substation, the main electric power supply building, the emergency power supply and backup generators. Grossi said there were no changes to radiation levels following the attack or any indication of damage to the underground section of the plant. That part of the facility is buried to protect it from airstrikes and contains the bulk of Natanz's enrichment facilities, with 10,000 centrifuges that enrich uranium up to 5%, Albright said. However, Grossi said, the loss of power may have damaged centrifuges. There is a good chance the strikes still caused 'massive damage,' Hinz said because many of the centrifuges were probably operating at the time of the strike. Centrifuges, Albright said, 'don't like vibration,' and the shock waves or loss of power could break delicate parts when they are rotating at high speed. Most of Iran's centrifuges are in Natanz, the experts said, because a lot of them are required to enrich uranium to 5% — which is the maximum level normally used for nuclear-fueled power stations. But, buried under a huge mountain at Fordo, around 100 kilometers (60 miles) southwest of Tehran, is another nuclear facility where Iran is also enriching uranium to 60%, which is only a short step away from weapons-grade levels of 90%. According to the IAEA, Tehran has the largest number of its most powerful centrifuges at Fordo. An Iranian news outlet close to the government reported Friday that two explosions were heard near the Fordo site. But, while Israel could potentially hit the entrance to Fordo and temporarily block access, it is not believed to have the type of earth-penetrating bombs required to blow up the mountain and crack open the nuclear facility inside, Hinz said. That capacity lies with the U.S., which has developed a massive bomb that can be dropped only from large aircraft that Israel does not have in service, he said. The potential for more strikes loomed large. Israeli Prime Minister Benjamin Netanyahu has said the attacks will continue 'for as many days at it takes to remove this threat.' Hinz said the attacks showed Israeli intelligence had 'absolutely exceptional' knowledge of Iran's nuclear program and the ability to strike at key targets 'with precision.' That could mean Israel could sabotage the plant, rather than trying to blast the mountain open. Albright suggested Israel could try to cut off electricity to Fordo, which could lead to centrifuges breaking. Although Grossi said part of the enrichment facility at Natanz was destroyed, he noted that radiation levels had not spiked. Even if radiation did leak, experts said, the amount would be unlikely to pose a risk to people in the region or even those near the facilities that got hit. 'Very little uranium will be released in these kind of attacks,' Albright said. Uranium itself is not especially toxic, he said, and is common in parts of the environment. A person standing near an enrichment facility with a leak would probably be exposed to no more radiation than someone who took several transatlantic flights, which receive slightly higher radiation because radiation doses are larger at high altitudes, he said. In order to become sick, someone would have to ingest large quantities of uranium, Albright said, pointing out that the element can be found naturally in seawater and the earth's crust. Rather than radiation, the greater risk might be from fluorine, which is used to enrich uranium and could have been deadly to those nearby if released during an attack. Fluorine is mixed with the uranium during enrichment to turn it into a gas called uranium hexafluoride. It is extremely volatile, will quickly corrode and can burn the skin. It is especially deadly if inhaled. ___ The Associated Press receives support for nuclear security coverage from the Carnegie Corporation of New York and Outrider Foundation. The AP is solely responsible for all content. ___ Additional AP coverage of the nuclear landscape:
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The Army is set to celebrate 250 years with a parade that coincides with Trump's birthday
WASHINGTON (AP) — The massive military parade that President Donald Trump has long wanted is set to step off from the Lincoln Memorial on Saturday evening, with tanks, bands and thousands of troops. And the biggest question marks are whether it will be overshadowed or delayed by either the weather in Washington or planned protests elsewhere around the country. Falling on Trump's 79th birthday, the parade was added just a few weeks ago to the Army's long-planned 250th anniversary celebration . It has triggered criticism for its price tag of up to $45 million and the possibility that the lumbering tanks could tear up city streets. The Army has taken a variety of steps to protect the streets, including laying metal plates down along the route. The daylong display of America's Army comes as Trump has shown his willingness to use his fighting forces in ways other U.S. presidents have typically avoided, inviting an array of lawsuits and accusations that he is politicizing the military. He has deployed the California National Guard and U.S. Marines to provide security during Los Angeles protests tied to immigration raids. It marks the first time in 60 years that a president activated the National Guard on federal orders inside a state without a governor's permission, and California Gov. Gavin Newsom has filed a lawsuit to stop the deployments. Earlier in the week, Trump raised eyebrows during a speech at Fort Bragg when members of the 82nd Airborne Division were directed to stand behind Trump and they booed and cheered during his incendiary remarks , including condemnation of his predecessor, Joe Biden. There also was a pop-up 'Make America Great Again' merchandise stand nearby selling souvenirs to troops in uniform. The Defense Department has a doctrine that prohibits troops from participating in political activity while in uniform. Members of Congress and military leaders have expressed concerns about the political displays during the speech at Fort Bragg. Trump so far has shrugged off concerns about the parade cost, the rainy forecast and the potential for protests. 'What a day it will be!!!' Trump wrote on his social media site, adding later that he hoped the weather would cooperate but that if it doesn't, 'that brings you good luck. That's OK too. Doesn't matter. Doesn't affect the tanks at all. Doesn't affect the soldiers. They're used to it. They're tough. Smart.' As for the protests, he warned that 'they will be met with very big force.' The 'No Kings' rallies planned in hundreds of cities nationwide are meant to counter what organizers say are Trump's plans to feed his ego on his 79th birthday and Flag Day. No protests are scheduled to take place in Washington, D.C., however, and officials have said they so far have no indication of any security threat. About 6 in 10 Americans say Saturday's parade is 'not a good use' of government money, including the vast majority of people, 78%, who neither approve nor disapprove of the parade overall, according to a poll from The Associated Press-NORC Center for Public Affairs Research . The parade will wind down Constitution Avenue, which is already lined with security fencing and barriers. Army helicopters and aircraft will fly above, and the march will be capped off by a parachute jump, a concert featuring 'God Bless the U.S.A.' singer Lee Greenwood and fireworks. With rain expected, there is a chance the parade could be interrupted by thunderstorms. White House spokesperson Anna Kelly has said the march will go on rain or shine. But it could be delayed if there is lightning, with authorities quick to empty the expansive National Mall if it happens during major events. The parade fulfills Trump's expressed desire for a big parade that he tried to get done in his first presidential term after seeing one in France on Bastille Day in 2017. Trump said that after watching the two-hour procession along the famed Champs-Élysées, he wanted an even grander one on Pennsylvania Avenue. The Army expects as many as 200,000 people could attend the festival and parade. The festival will begin around 9:30 a.m. EDT and feature fitness competitions, demonstrations, equipment displays, music and a cake-cutting ceremony. The parade is set to begin at 6:30 p.m. EDT, but parts of it — including the horse-drawn caissons and other units — start at the Pentagon, head over a bridge and meet up with some of the heavier tanks and equipment. Officials did not want the more-than-60-ton M1A1 Abrams tanks and Stryker vehicles crossing the bridge. Timed down to the minute, the march will be divided into sections by history — with equipment and troops in full dress from each period. It will include a total of 6,169 soldiers and 128 Army tanks, armored personnel carriers and artillery, while 62 aircraft fly overhead. At the end of the parade, Trump will swear in 250 new or reenlisting troops, and the Army's Golden Knights parachute team will jump onto the Mall. That will be followed by the concert and fireworks. ____ Associated Press writers Michelle L. Price and Tara Copp contributed to this report. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
