Oil & gold prices shoot up, flights disrupted: How Israel's attack on Iran will impact you

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Israel's strikes on Iran's nuclear and missile sites on Friday have raised alarm of an all-out war in West Asia. Tehran retaliated to the attack by launching drones. The escalation has resulted in airspace closure and a surge in oil and gold prices. Here's how the conflict is affecting your life read more
Damages are seen in a building after an explosion in a residence compound after Israel attacked Iran's capital Tehran, Friday, June 13, 2025. AP
Israel's strikes on Iran have raised the fear of an all-out war after they targeted Tehran's nuclear programme and killed two top military officers. Israeli Prime Minister Benjamin Netanyahu said that the Friday strikes were the beginning of a prolonged operation to 'remove' the nuclear 'threat' from Iran.
'We are at a decisive moment in Israel's history,' he said in a recorded video message.'Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival. This operation will continue for as many days as it takes to remove this threat.'
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Israel's widescale strikes on Iran have spooked the markets, driven oil and gold prices up and disrupted flights.
Let's take a closer look.
Israel-Iran conflict escalates
Israel said it targeted Iran's nuclear facilities , ballistic missile factories and military commanders on Friday (June 13).
Blasts were reported in the main uranium enrichment facility at Natanz, Reuters reported, citing Iranian media.
Iran's paramilitary Revolutionary Guard said its leader, Hossein Salami, was killed. It said that the unit's headquarters in Tehran was struck.
The chief of staff of the Iranian armed forces, General Mohammad Bagheri, is also reported to have been killed.
'We can now confirm that the Chief of staff of the Iranian Armed Forces, Commander of the IRGC and the Commander of Iran's Emergency Command were all eliminated in the Israeli strikes across Iran by more than 200 fighter jets,' Israel Defense Forces (IDF) wrote on X.
We can now confirm that the Chief of staff of the Iranian Armed Forces, Commander of the IRGC and the Commander of Iran's Emergency Command were all eliminated in the Israeli strikes across Iran by more than 200 fighter jets.
These are three ruthless mass murderers with… — Israel Defense Forces (@IDF) June 13, 2025
Iran has vowed revenge, with Supreme Leader Ayatollah Ali Khamenei warning that 'severe punishment' would be inflicted on Israel. Reports say, citing Israel's military, that Iran has retaliated by launching hundreds of drones.
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'In the last few hours, Iran has launched more than 100 drones toward Israel, and all the defence systems are acting to intercept the threats,' Brigadier General Effie Deffrin, Israel's chief army spokesman, was quoted as saying by Associated Press (AP).
The United States has said it was not involved in Israel's attack on Iran. US Secretary of State Marco Rubio said Israel took 'unilateral action against Iran'.
'We are not involved in strikes against Iran, and our top priority is protecting American forces in the region,' Rubio said in a statement released by the White House.
Airspace closed, flights disrupted
The escalating tensions between Israel and Iran have led to the disruption of flight operations in the region.
Israel's main airport was shut until further notice. Israeli flag carrier El Al Airlines suspended flights to and from Israel.
Iran has closed its airspace until further notice, Reuters reported, citing state media and notices to pilots.
Air India said it diverted flights or forced them to return, including ones from New York, Vancouver, Chicago and London, in view of passenger safety.
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#TravelAdvisory
Due to the emerging situation in Iran, the subsequent closure of its airspace and in view of the safety of our passengers, the following Air India flights are either being diverted or returning to their origin:
AI130 – London Heathrow-Mumbai – Diverted to Vienna… — Air India (@airindia) June 13, 2025
Iraq also shut its airspace, suspending all traffic at its airports.
Jordan's civil aviation authority said the country's airspace will be closed for all flights, several hours after Israel's operation.
Qatar Airways cancelled its two flights to Damascus on Friday, as per Flightradar24 data.
ALSO READ: Israel strikes Iran's nuclear sites, top brass killed: Is West Asia headed for an all-out war?
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Oil prices shoot up
Israel's strikes on Iran sent oil prices up. US benchmark crude oil increased by 8.2 per cent or $5.6 (Rs 482) to $73.61 (Rs 6,337) per barrel. Brent crude, the international standard, rose by $5.52 (Rs 475) to $74.88 (Rs 6,446) per barrel.
Oil traders are worried that a wider conflict between Israel and Iran could result in the closure of the Strait of Hormuz. Located between Oman and Iran, it connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is a vital route through which 20 per cent of the world's total crude oil passes daily.
Oil prices could surge to as high as $130 (Rs 11,191) a barrel in the 'severe outcome' of a blockade of the Strait of Hormuz or a broader 'conflagration' in West Asia, Bloomberg reported, citing JPMorgan.
Two Iranian Islamic Revolutionary Guard Corps Navy (IRGCN) fast in-shore attack craft (FIAC), a type of speedboat armed with machine guns, operate in close proximity to the US Coast Guard cutter USCGC Maui as it transits the Strait of Hormuz with other US naval vessels, May 10, 2021. File Photo/Reuters
However, many oil traders in Singapore said it was still quite early to predict that the latest escalation between Israel and Iran would impact the oil shipments in West Asia. 'It's too early to tell but I think the market is worried about shutting off of the Strait of Hormuz,' one of the traders told Reuters.
They said it depends on Iran's response and whether the US will intervene.
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Barclays analyst Amarpreet Singh said Israel's strikes have stunned the oil markets. 'In a worst-case scenario, the conflict could expand to other key oil and gas producers in the region, and shipping,' he reportedly said in a note.
Markets, gold prices respond to Israel-Iran conflict
Tensions in oil-rich West Asia also alarmed the markets in India. Indian shares fell on Friday, led by oil and gas stocks. The Nifty 50 declined 1.21 per cent to 24,586.7 and the BSE Sensex plunged 1.2 per cent to 80,710.56, as of 9:35 am.
The MSCI Asia ex-Japan index dipped one per cent.
Gold prices spiked amid Israel's strikes on Iran, touching their highest levels in roughly two months. Gold is considered a safe-haven asset in times of uncertainty.
Spot gold rose 1.2 per cent at $3,423.30 an ounce, as of 10.30 am. US gold futures were up 1.2 per cent to $3,444.50.
'Gold surged past resistance around $3,400 on news of the airstrikes, and further upside could be in store should the escalation continue,' Tim Waterer, chief market analyst at KCM Trade, told Reuters.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, told Economic Times that there could be wider economic ramifications if the situation escalates. 'The impact on the market will depend on how long the conflict lingers. In the near term, the market will be in a risk-off mode. Sectors that use oil derivatives as inputs like aviation, paints, adhesives and tyres will be hit hard. Oil producers like ONGC and Oil India will remain resilient. Nifty is likely to get strong support at the 24,500 level,' he said.
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With inputs from agencies