Israel Strikes Iran: Market Reactions and Investor Moves

Market Turmoil Follows Military Strike

Asian markets faced a tough day on Friday. This came after Israel launched a military strike on Iran. The strike caused a sharp selloff in US futures and global equities. Meanwhile, oil prices soared, and investors rushed to safe havens like gold and the Swiss franc.

Global Market Reactions

• US S&P E-mini futures fell by 1.5%. Nasdaq futures dropped by 1.7% by 0055 GMT.
• In Asia, Japan’s Nikkei slipped by 1.4%. South Korea’s KOSPI declined by 1.2%.

Safe Haven Assets Surge

• Brent crude surged over 6% to $73.56 a barrel.
• Gold rose by 1% to around $3,419 per ounce.

Escalation in Middle East Tensions

Israel launched a military strike on Iran late Thursday. Explosions were reported across Tehran. This move marks a serious escalation in the long-standing tensions between the two nations. The conflict has been ongoing for years, primarily over Iran’s nuclear program.

Fears of Wider Conflict

The attack has sparked fears of a wider conflict in the Middle East. This region is crucial for global oil supply. The strike comes at a time when financial markets are already under pressure. This is due to ongoing trade policy changes by the US President.

State of Emergency Declared

Israel declared a state of emergency. They are expecting a potential missile or drone response from Iran. Israel called the strike a “preemptive strike” targeting Iran’s nuclear facilities. The strike comes amid ongoing negotiations between the Trump administration and Iran regarding nuclear limitations.

US Non-Involvement Confirmed

US Secretary of State Marco Rubio confirmed American non-involvement. He stated that Israel acted independently. “Tonight, Israel took unilateral action against Iran. We are not involved in strikes against Iran. Our top priority is protecting American forces in the region,” said Rubio.

Traders Seek Safety

“Traders are scurrying for safety as reports of a strike on Iran cross the wires,” said Karl Schamotta. He is the chief market strategist at Corpay in Toronto. “But details on the scale and magnitude of the attack remain scarce. Moves have been relatively limited thus far,” Karl added.

Rising Tensions and Stalled Negotiations

Tensions had been rising as efforts by Trump to strike a nuclear deal with Iran remained stalled. US and Iranian officials were set to begin a sixth round of talks on Iran’s growing uranium enrichment program in Oman on Sunday.

Currency Market Reactions

• The Swiss currency strengthened by 0.4% to 0.8072 against the US dollar.
• The yen rose by 0.3% to 143.06 per dollar.
• The euro slipped by 0.3% to $1.1553, pulling back slightly after a 0.9% gain the previous day.