Global Markets React to Israel-Iran Conflict
U.S. stocks took a hit on Friday due to the intensifying conflict between Israel and Iran. The Dow Jones dropped by 1.79%, while the S&P 500 and Nasdaq fell by 1.13% and 1.30%, respectively.
Israel’s strikes on Iran’s nuclear and missile facilities late Thursday night sparked a series of retaliatory actions. This led to a surge in oil prices, with Brent crude rising over 7%.Defense and oil stocks, like ExxonMobil and Lockheed Martin, saw gains.
Gold prices also climbed, nearing its April record. however, the sell-off dampened what was expected to be a positive week for equities.
global markets also felt the impact. European and Asian markets also suffered losses.
President Trump called on Iran to return to nuclear talks, warning of further consequences.Iran, however, canceled planned negotiations with the U.S. Despite the geopolitical tension, the University of Michigan’s consumer sentiment index rose sharply in June.
Investors now face renewed inflation risks from rising oil prices and uncertainty around future Federal Reserve actions.
