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. Investors rushed to assets perceived as less risky. Gold rose 1% and the dollar strengthened.
The University of Michigan's preliminary consumer survey for June is due at 10 a.m. ET. The previous reading showed near-record gloom about the economy, though sentiment brightened slightly during May after the U.S.-China trade truce.
That pact with China was restored this week, after further tensions. Treasury Secretary Scott Bessent declined Thursday to give clarity on the timeline for tariffs on China.
Meantime, House Republicans narrowly passed a $9.4 billion rescissions package that includes cuts to foreign aid and public broadcasting. The package now heads to the Senate.
In recent trading:
Oil prices jumped. Brent crude futures rose over 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 Fridays. Auto stocks took an extra knock after President 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, signalling rising investor caution.
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(END) Dow Jones Newswires
June 13, 2025 09:42 ET (13:42 GMT)
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