Stocks slide, oil and gold jump after Israel hits Iran
Stocks have dived in early Asian trade, led by a sell-off in US futures, while oil prices jumped after Israel conducted a military strike on Iran, sending investors scurrying to safe havens such as gold and the Swiss franc.
The Israeli attack on Friday raises the risk of a fresh escalation in tensions in the Middle East, a major oil producing region, and comes at a time of heightened pressure on the global economy and financial markets from US President Donald Trump's shakeup of trade policies.
Market reaction was swift, with US S&P E-mini futures slumping 1.5 per cent and Nasdaq futures skidding 1.7 per cent.
Japan's Nikkei lost 1.4 per cent and South Korea's KOSPI slipped 1.2 per cent.
Brent crude jumped more than six per cent to $US73.56 a barrel.
Gold climbed one per cent to about $US3,419 an ounce.
Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran, after what it called a "pre-emptive strike" over Iran's nuclear program.
Explosions were heard northeast of Iran's capital Tehran early on Friday, the state-run Nour News said.
Two US officials who spoke on condition of anonymity said Israel had begun carrying out strikes on Iran and there was no US assistance or involvement in the operation.
CNN reported that Trump was convening a cabinet meeting.
"Traders are scurrying for safety as reports of a strike on Iran cross the wires," said Karl Schamotta, chief market strategist at Corpay in Toronto.
"But details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far."
Tensions had been building as Trump's efforts to reach a nuclear deal with Iran appear to be deadlocked.
US and Iranian officials were scheduled to hold a sixth round of talks on Tehran's escalating uranium enrichment programme in Oman on Sunday, according to officials from both countries and their Omani mediators.
The Swiss franc gained about 0.4 per cent to 0.8072 per US dollar, and fellow safe haven the yen appreciated 0.3 per cent to 143.06 per dollar.
The euro eased 0.3 per cent to $US1.1553, giving back a little of its 0.9 per cent overnight jump.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canberra Times
an hour ago
- Canberra Times
Iran fires missiles at Israel in response to attacks
Israeli officials said it may be some time before the extent of damage to the underground nuclear site at Natanz is clear, where Iran has refined uranium to levels some countries have long said are suitable for a bomb rather than civilian use.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Trump applauds Israeli strikes, says Iran now has ‘second chance' to make a deal
Washington: US President Donald Trump says Iran has a second chance to negotiate a nuclear deal and stave off 'even more brutal' attacks being planned by Israel in coming days, as Tehran began its retaliation by firing ballistic missiles at Israeli cities. Trump was conducting a meeting of the National Security Council in the White House Situation Room on Friday, Washington time, following Israel's 'pre-emptive' strikes on Iranian nuclear facilities and top government personnel the night before. In a series of short phone interviews with US media, Trump indicated he was fully aware of Israel's operations in advance, and said Iran must make a deal that forbids it from developing a nuclear weapon 'before there is nothing left'. 'We knew everything,' Trump told Reuters of Israel's attack plans. 'I tried to save Iran humiliation and death. I tried to save them very hard because I would have loved to have seen a deal worked out. They can still work out a deal, however. It's not too late.' Israeli Prime Minister Benjamin Netanyahu also said the US had been informed about the strikes in advance. He and Trump have spoken and were expected to remain in regular contact, according to the White House. Loading On his TruthSocial account, Trump said he gave Iran a 60-day ultimatum two months ago to 'make a deal' that would restrict them from developing a nuclear weapon. 'They should have done it! Today is day 61. I told them what to do, but they just couldn't get there. Now they have, perhaps, a second chance!' he wrote. The president's comments indicated greater support for Israel's actions than a terse initial statement from US Secretary of State Marco Rubio in the immediate aftermath of the strikes on Thursday night, US time – which expressed neither support for nor condemnation of Israel and stressed that the US was not involved.
The Age
2 hours ago
- The Age
Trump applauds Israeli strikes, says Iran now has ‘second chance' to make a deal
Washington: US President Donald Trump says Iran has a second chance to negotiate a nuclear deal and stave off 'even more brutal' attacks being planned by Israel in coming days, as Tehran began its retaliation by firing ballistic missiles at Israeli cities. Trump was conducting a meeting of the National Security Council in the White House Situation Room on Friday, Washington time, following Israel's 'pre-emptive' strikes on Iranian nuclear facilities and top government personnel the night before. In a series of short phone interviews with US media, Trump indicated he was fully aware of Israel's operations in advance, and said Iran must make a deal that forbids it from developing a nuclear weapon 'before there is nothing left'. 'We knew everything,' Trump told Reuters of Israel's attack plans. 'I tried to save Iran humiliation and death. I tried to save them very hard because I would have loved to have seen a deal worked out. They can still work out a deal, however. It's not too late.' Israeli Prime Minister Benjamin Netanyahu also said the US had been informed about the strikes in advance. He and Trump have spoken and were expected to remain in regular contact, according to the White House. Loading On his TruthSocial account, Trump said he gave Iran a 60-day ultimatum two months ago to 'make a deal' that would restrict them from developing a nuclear weapon. 'They should have done it! Today is day 61. I told them what to do, but they just couldn't get there. Now they have, perhaps, a second chance!' he wrote. The president's comments indicated greater support for Israel's actions than a terse initial statement from US Secretary of State Marco Rubio in the immediate aftermath of the strikes on Thursday night, US time – which expressed neither support for nor condemnation of Israel and stressed that the US was not involved.
