Stocks, crypto, and the US dollar saw sharp losses late Thursday following Israel’s launch of airstrikes on Iran, triggering fears of a wider Middle East conflict. The market reaction was immediate, with futures and major indexes tumbling across the board while oil and gold surged on safe-haven demand.
Dow futures fell 400 points, or 0.9%, while the S&P 500 and Nasdaq 100 futures dropped 1.1% and 1.3% respectively. This came after Israeli Defense Minister Israel Katz declared a nationwide state of emergency, warning of likely retaliation targeting civilians.
Gold and oil surge as safe Havens draw investors
Gold continued its strong rally, gaining 0.8% on Friday morning after a 0.9% jump the previous day. Spot gold reached $3,406.61 per ounce by 8:12 a.m. Singapore time, driven by escalating tensions and investor flight to safety. Other metals, including silver, platinum, and palladium, also posted gains.
Oil prices spiked as traders anticipated potential disruptions to global supply. Crude climbed sharply past $72 per barrel, with no sign of resistance, as fears grew over how far the conflict might spread in the region.
Meanwhile, the Bloomberg Dollar Spot Index fell 0.1%, and the US Dollar Index dropped to its lowest level since March 2022. The decline reflects investor preference for non-dollar assets amid rising uncertainty.
Crypto markets slide on geopolitical shock
Bitcoin plunged from $107,000 to $102,000 within minutes, posting a 2.6% loss. Ethereum followed with a 5% decline, falling to $2,400. Orbit Markets co-founder Caroline Mauron said the decline in crypto mirrors broader market weakness and warned that geopolitical developments would drive further price action.
She added that technical support for Bitcoin may emerge around the $101,000 level but cautioned that uncertainty remains high.
Asia markets react as wall street gains erased
Despite Wall Street finishing Thursday in positive territory, the news from the Middle East wiped out those gains overnight. The Dow and Nasdaq each rose 0.2% during regular trading, while the S&P 500 climbed 0.4%, coming within 2% of its all-time high. All three reversed in after-hours trading.
In Asia, Japan’s Nikkei 225 lost 0.36%, and the Topix fell 0.43%. South Korea’s Kospi rose 0.38%, and the Kosdaq edged up 0.15%. Australia’s ASX 200 remained flat, while Hong Kong’s Hang Seng futures showed a mild gain.NBC News confirmed Israel acted alone in the strikes, with no direct US involvement, calming immediate concerns of broader engagement.
The post Markets Tumble as Israel-Iran Conflict Erupts, Oil Prices Surge first appeared on Coinfea.
