Friday 13th brings explosions in Tehran, race to safe havens
Britain's FTSE was down less than 0.5% in the futures market. (EPA Images pic)
LONDON : It had to be Friday the 13th, right?
The morning began with explosions in Tehran that appeared to be much more serious than tit-for-tat strikes between Israel and Iran last year.
Though a preemptive strike by Israel on Iran's budding nuclear capability had been suspected, the timing and severity still took markets by surprise, with oil prices jumping over 11% at one point.
What remains unclear is what role or knowledge the US had about the offensive and what Washington will do if Iran retaliates.
Secretary of state Marco Rubio said the US was not involved, while Israel's state broadcaster said Washington had been notified before the strikes.
Steve Witkoff, President Donald Trump's special envoy to the Middle East, had been expected to meet Iran's foreign minister in Oman on Sunday.
Oil's jump put it on course for the sharpest daily gain in more than five years.
Gold and Treasuries surged in Asian trading, while stock futures pointed to roughly 1.5% declines in Europe and US.
Britain's FTSE was down less than 0.5% in the futures market.
With rubber bullets flying in Los Angeles and missiles dropping in Tehran, global economies are clearly prioritising guns over butter.
Major defence contractors in Europe such as Britain's BAE Systems, France's Dassault Aviation, and Sweden's Saab AB may be active today.
Key developments that could influence markets today include the final May CPI readings from Germany and France, as well as the Euro zone's April trade balance and industrial production data.
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