By Caitlin McCabe and Vicky Ge Huang
Oil prices surged and stocks dropped after Israel attacked Iranian nuclear sites and military leaders, and Tehran retaliated with drone strikes.
Fears the attack could spiral into a wider conflict sent stocks falling around the world early Friday. 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."
Investors rushed to assets perceived as less risky. Gold rose 1% and the dollar strengthened.
Meantime, consumer sentiment is improving, a University of Michigan survey showed, after diving due to tariffs and rapid shifts in trade policy. A preliminary index for June rose to a stronger-than-expected 60.5, following dire recent readings.
In recent trading:
Oil prices jumped. Brent crude futures rose about 7%, topping $74 a barrel.
Stocks retreated. The S&P 500, Dow industrials and Nasdaq Composite all fell by 0.7% or more.
Energy and defense stocks gained, while airline shares fell.
Stocks in Europe and Asia slipped. Most Middle Eastern stock exchanges are closed Friday. Auto stocks took an extra knock after Trump floated steeper vehicle levies.
The WSJ Dollar Index strengthened, after settling Thursday at its lowest level in nearly two years.
Israel's shekel fell more than 1% against the dollar.
The Cboe Volatility Index-known as the VIX, or Wall Street's fear gauge-jumped, signaling rising investor caution.
Write to Caitlin McCabe at caitlin.mccabe@wsj.com and Vicky Ge Huang at vicky.huang@wsj.com
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(END) Dow Jones Newswires
June 13, 2025 12:18 ET (16:18 GMT)
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