Oil prices surge over 10% after Israel said it struck Iran
US benchmark West Texas Intermediate crude oil futures jumped as much as 14%. They were trading 9.4% higher at $74.45 a barrel at 11:22 p.m. ET on Thursday.
International benchmark Brent crude oil futures gained as much as 13% and were up 8.9% at $75.5 a barrel at 11:23 p.m. ET
"This has elevated geopolitical uncertainty significantly and requires the oil market to price in a larger risk premium for any potential supply disruptions," wrote Warren Patterson, the head of commodities strategy at ING, on Friday.
Iran is the fourth-largest oil producer in the Organization of Petroleum Exporting Countries and has repeatedly threatened to close the Strait of Hormuz, a key oil shipping route for oil and gas that connects the Persian Gulf to the Gulf of Oman.
Nearly a third of global seaborne oil moves through the Strait of Hormuz, wrote Patterson. Qatar, which accounts for one-fifth of the world's liquified natural gas trade, also uses this route to ship the fuel.
"Unfortunately, there is no alternative route," wrote Patterson. "This would leave the global LNG market extremely tight, pushing European gas prices significantly higher."
The sharp upswing in oil prices comes after a period of lull in the oil markets due to ample supply and slow demand. Until now, crude prices were broadly moving lower this year.
Any sustained rise in energy prices would push up inflation and pump prices at a time of heightened economic uncertainty amid President Donald Trump's import tariffs.
Israel's major strike against Iran
Israel's military launched a major preemptive strike against Iran's nuclear program on Friday morning local time. Israeli Prime Minister Benjamin Netanyahu said in a video statement on Friday that the operation will continue "for as many days as it takes."
Netanyahu said in his statement that Iran has produced enough highly enriched uranium for nine atom bombs, but did not provide any evidence to back his claim. Iran's nuclear program presents "a clear and present danger to Israel's very survival," he added.
Israel's strike on Iran comes as the US is engaging Iran on a new nuclear deal. President Donald Trump said earlier on Thursday that an attack on Iran "could very well happen" if they were not able to reach an agreement.
Secretary of State Marco Rubio said in a statement on Thursday, after the attack, that Israel had taken "unilateral action" against Iran.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
30 minutes ago
- Business Insider
Dow Jones Index Today: DJIA Drops on Israel Strikes as Consumer Sentiment Jumps
The Dow Jones (DJIA) is down by over 1% as the market processes the impact of Israel's attack on Iran's nuclear and military facilities. Meanwhile, oil prices are surging as the conflict threatens to disrupt energy supply chains in the Middle East. Confident Investing Starts Here: On Friday, President Trump said that Israel's strikes will actually be a positive for the market. 'I think ultimately, it would be great for the market because Iran will not have a nuclear weapon. It will be great for the market—should be the greatest thing ever for the market. Iran won't have a nuclear weapon that was a great threat to humanity,' said Trump in an interview with the Wall Street Journal. Trump also added that he was aware of the attack before it occurred and that he plans to speak with Israeli Prime Minister Benjamin Netanyahu today. Meanwhile, consumer sentiment has finally reversed a six-month slump based on the University of Michigan's Index of Consumer Sentiment. The index's preliminary June reading came in at 60.5, above the estimate for 53.5 and up from 52.2 in May. Furthermore, UM's year-ahead inflation expectation tallied in at 5.1% compared to 6.6% last month. Long-run inflation expectations are now at 4.1%, down from 4.2%. Which Stocks are Moving the Dow Jones? Let's shift our attention to TipRanks' Dow Jones Heatmap, which illustrates the stocks that have contributed to the index's price action. In a weak finish to the week, every single technology stock within the index is falling, led by Salesforce (CRM) and Nvidia (NVDA). In addition, payment providers Visa (V) and American Express (AXP) are taking a hit after the Wall Street Journal reported that Amazon (AMZN) and Walmart (WMT) are exploring the idea of issuing proprietary stablecoins. Elsewhere, communications services, energy, and healthcare, excluding embattled UnitedHealth Group (UNH), are relatively muted as we head into the weekend. DIA Stock Moves Higher with the Dow Jones The SPDR Dow Jones Industrial Average ETF (DIA) is an exchange-traded fund designed to track the movement of the Dow Jones. In addition, DJIA can't be bought or sold, although DIA can be. Wall Street believes that DIA stock has room to rise. During the past three months, analysts have issued an average DIA price target of $466.70 for the stocks within the index, implying upside of 9.82% from current prices. The 31 stocks in DIA carry 30 buy ratings, 1 hold rating, and zero sell ratings.
CNBC
30 minutes ago
- CNBC
Trump approves U.S. Steel merger with Japan's Nippon after companies sign national security agreement
President Donald Trump issued an executive order on Friday approving U.S. Steel's merger with Japan's Nippon Steel, after the companies signed a national security agreement with the U.S. government. Trump opposed U.S. Steel's controversial sale to Nippon in the runup to the 2024 president election, as Republicans and Democrats have leaned into protecting U.S. companies against foreign competitors. But Trump started softening his opposition to the takeover after assuming office, ordering a new review of the deal in April. President Joe Biden had blocked U.S. Steel's sale to Nippon during his final days in office, citing national security concerns, despite Japan being a close ally. Trump has avoided calling the deal an acquisition or merger, describing it as a "partnership" in a May 23 post on his social media platform Truth Social. He insisted that U.S. Steel will remain "controlled by the USA" during a speech to workers at one of the company's plants outside Pittsburgh on May 30. U.S. Steel made clear it would become a "wholly owned subsidiary" of Nippon North America under the terms of the merger agreement in an April 8 filing with the Securities and Exchange Commission. Trump's description of the deal as a "partnership" caused confusion among investors and union leadership. The president told U.S. Steel workers that Nippon will be a "great partner." The Trump administration is currently engaged in trade talks with Japan as investors eagerly await signs that the U.S. will strike deals with key partners that avoid steep tariffs. Trump told the steelworkers that Nippon had agreed to keep U.S. Steel's blast furnaces operating at full capacity for a minimum of 10 years. The president said the deal would not result in layoffs and promised there would be "no outsourcing whatsoever." He said workers will receive a $5,000 bonus. Trump announced that he was doubling U.S. tariffs on steel imports to 50% during his remarks to U.S. Steel workers. Those tariffs went into effect on June 4.
Yahoo
44 minutes ago
- Yahoo
Tender Store Owner Cheryl Daskas Dies at 71
Funeral services were held in Troy, Mich., on Friday for Cheryl Daskas, a former model who ran the directional fashion boutique Tender. The cause of death for Daskas, who died on June 9, was not immediately known, according to the publicist Ellen Carey, who was a friend. Daskas had seemed 'fine' while working in the store on Saturday, aside from complaining of a leg issue, Carey said. She was found 'peacefully' at her home, following a wellness check by one of her employees, Carey said. More from WWD Groundbreaking Fashions Focus of Tokyo Exhibition Suite Talk: Frank Darling's Kegan Fisher on Making the Move From Tech to Art The History Behind the World's Most Expensive Tiaras: From Elizabeth Taylor's Mike Todd Headpiece to the $12.7 Million Henckel von Donnersmarck Tiara and More Born in Detroit, the 71-year-old spent her career in the fashion industry in different capacities. For the past 32 years, she owned and operated the store Tender in Birmingham, Mich., with her sister Karen. Tender is known for its European designer labels, which prior to the store's opening were not in abundance in the Midwest. The pair owned the downtown building that houses Tender, and they shared a home as well. Daskas earned a bachelor's degree at Michigan State University before getting into fashion. During her high school and college years, she modeled for the Ford Motor Company, Hudson's department store and other brands, before deciding 'that's not where she was going to make her money,' her sister said. 'She said it was like looking for a job every day of your life. Our mother was a model too. She was British and Scandinavian. They were both so pretty.' Tender once resided next door to a leading designer retailer Linda Dresner. After Dresner shuttered that store, Tender picked up Dries Van Noten. It also sells Erdem, Simone Rocha and Ashlyn, a 2025 CFDA/Vogue Fashion Fund finalist, for its 3,000-square-foot shop. Lanvin was once a strong seller there, during the Alber Elbaz years, Carey said. With pale blue walls, architectural displays and top-shelf names, Tender looks more like the type of a polished retailer one finds in Manhattan or Los Angeles. Ashlyn's managing director Johanne Shepley Siff met the sisters 30 years ago in her former role as senior vice president of sales and marketing at Prada. Siff said, 'We've lost one of the gems of the specialty store business. Cheryl was a force. I called her a 'textile archeologist.' She could immediately identify products of integrity.' Sift added, 'Tender is one of the opinion leaders, and one of the go-to retailers at the high-end specialty store. They not only take the risk to identify emerging talent, but they also have the structure and wherewithal to introduce that talent to a customer they have cultivated to appreciate new talent.' Accustomed to working six days a week, Cheryl Daskas would arrive at 8:30 am, if a customer requested that. The co-owners called their store employees 'Tender-ettes,' and they stayed connected with those past and present through the years, Karen Daskas said. 'Cheryl loved what she did. It was not about her or Tender. It was always about everybody else doing well,' Karen Daskas said. 'She had this gift, where she could look at someone and immediately know what size they were and what types of clothes would look good on them. And you didn't have to be a size four. You could be any size. She was just going to make you look great and feel the best that you can be.' With a larger-than-life personality, she was recognizable for her auburn cropped hair, broad smile and designer outfits. 'She was very tall and grand. When she came into a room, she stole the show,' Carey, who owns Seed Inc., said. Even in the early 1990s, the sisters understood the importance of retailers working closely with manufacturers to create items that would appeal to their customers. They took a highly personal approach to helping shoppers in the store and were also loyal supporters of the arts community through events and philanthropy in Birmingham, Carey said. Recalling how they collaborated on vintage jewelry shows at Tender on occasion, Carey said, 'Cheryl could sell like no one else could. Her heart was 100 percent in everything she did. Why do you want to do something if you're not going to do it well?' They would typically sell 150 of 200 items during a two-day sale. Kenneth Jay Lane items were of particular interest to shoppers and to Daskas, who would set aside five pairs of earrings for herself, Carey said. 'I would say, 'Cheryl, these are for the customers,' and she would say, 'Well, I'm a customer.'' But she wore them during the trunk show sales, and she was the showpiece, Carey said. 'And you're going to want them, if she's wearing them. Karen would not have done that. Karen would have sold them.' While Cheryl Daskas handled front-of-the house sales and the store's social media, Karen Daskas managed the buying trips. Off the clock, Cheryl Daskas enjoyed gardening, relaxing poolside, grilling and sharing meals and binge-watching shows with her sister. 'Every night we would tell eachother we loved eachother and give eachother a hug. We never fought except for a couple of sister squabbles,' Karen Daskas said. 'It's just a shock. We never got married and we didn't have kids. We have two little Kerry Terriers 'Whiskey' and 'Gogo.'' Daskas is survived by her sister. Best of WWD Kate Middleton's Looks at Trooping the Colour Through the Years [PHOTOS] Young Brooke Shields' Style Evolution, Archive Photos: From Runway Modeling & Red Carpets to Meeting Princess Diana The Most Memorable French Open Tennis Outfits With Serena Williams, Naomi Osaka & More [PHOTOS]
