Amid renewed Israel-Iran tensions, stock market futures took a hit Thursday. Oil prices surged over 3%, while gold climbed, driven by concerns. Reports of explosions in Iran, Syria, and Iraq added to the uncertainty following Israel’s military operation.
What Happened: Dow Jones Industrial Average futures dipped by 430 points, marking a 1.15% decline. S&P 500 futures also experienced a loss of nearly 1.34%, while Nasdaq 100 futures were down by 1.62%, according to data from Benzinga Pro.
The oil prices also surged by over 3% in the Asian morning trading, with the global benchmark Brent crude futures exceeding $90 per barrel.
Gold prices climbed beyond $2,400 per ounce driven by concerns over growing tensions between Israel and Iran, sparking increased demand for safe-haven assets.
Bullion surged by as much as 1.3%, marking its fifth consecutive weekly gain, prompted by unverified media reports of explosions in Iran, Syria, and Iraq, according to Bloomberg.
Asian markets responded to escalating tensions between Israel and Iran with significant declines on Friday. The Nikkei 225 experienced a notable drop, trading at 37,085.40, down 2.61%, while the Hang Seng Index also saw a decline, trading at 16,177.25, down 1.27%. India’s Nifty 50 opened the day at 21,813.20, marking a decrease of 0.83%, reflecting the cautious sentiment among investors.
Why It Matters: The renewed conflict between Israel and Iran comes on the heels of a series of alleged retaliatory strikes by Israel on Iran, Syria, and Iraq. This escalation followed an Iranian missile attack on Israel, which was seen as retaliation for an incident in Syria attributed to Israel.
The U.S. has responded to the Apr. 13 attack on Israel by intensifying economic pressure on Iran, imposing new sanctions on a network of individuals and organizations involved in developing Iran’s Unmanned Aerial Vehicle (UAV) capabilities. These UAVs were reportedly used in the attack, implicating entities under the Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
Amid these developments, the stock market has been volatile, with investors fearing a potential escalation in the Middle East, where a significant portion of the world’s oil is produced. The price of oil has been a particular concern, with experts warning that sustained prices above $100 a barrel could increase the likelihood of a U.S. recession.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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