By Heard Editors
What Happened in Markets Today
Israel launched a broad air campaign against Iran, targeting its nuclear capabilities and military/political leadership. Markets were rattled after Israel said it had detected dozens of missiles launched from Iran and was working to intercept them. President Trump, who told The Wall Street Journal that he was read in on Israel's plans, urged Iran's leadership to make a nuclear deal "before there is nothing left."
Oil prices jumped. Brent crude futures rose 7%, to $74.23 a barrel. Say goodbye to sub-$60 a barrel prices this year, said Tom Holland of Gavekal Research. The strikes marked a departure from earlier exchanges between the two countries, he said, describing Israel's attacks as "aggressive and preemptive."
Equities fell. The S&P 500 and Nasdaq Composite both fell more than 1%, while the Dow industrials lost 1.8%, or 770 points. Energy and defense stocks gained, while airline shares fell. Stocks in Europe and Asia slipped. Most Middle Eastern stock exchanges are closed Fridays. Auto stocks took an extra knock after President Trump floated steeper vehicle levies.
Investors rushed to assets perceived as less risky. Gold rose 1.5% to a new record and the dollar strengthened. Still,Treasury yields rose, with investors calculating that the surge in oil prices could push up overall inflation and make it harder for the Federal Reserve to cut interest rates.
Consumer sentiment is improving. A University of Michigan survey for June rose to a stronger-than-expected 60.5, following dire recent readings.
This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.
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(END) Dow Jones Newswires
June 13, 2025 16:28 ET (20:28 GMT)
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