Sharp Decline After News of Israel's Attack on Iran📈📈

#IsraelIranConflict Financial markets experienced a sharp decline following news of the Israeli attack on Iran early Friday, June 13, 2025, targeting military and nuclear sites in the Iranian capital. This escalation in tensions between the two countries had a significant impact on global markets, with oil prices soaring dramatically and stock markets declining.

1️⃣Main Market Reactions:

♦️Oil Prices: Oil prices saw a significant rise, with Brent crude jumping over 12% following the attack, surpassing $77 per barrel before slightly trimming its gains. This surge comes amid investors' fears of major disruptions in oil supplies from the region, especially with the potential impact of the conflict on the Strait of Hormuz, a vital shipping route through which about 20% of global oil consumption passes.

♦️Stock Markets: Global stock markets generally declined, including Asian and European stocks and U.S. index futures. For example, the Japanese Nikkei index, the South Korean KOSPI, and the Hong Kong Hang Seng index all fell. Stock markets in the Middle East also collectively declined as investors moved towards risk avoidance.

♦️Safe Havens: Investors turned to assets considered safe havens in times of uncertainty, such as gold, the Swiss franc, and the U.S. dollar. The price of gold rose significantly, approaching its all-time highs.

♦️Cryptocurrencies: Cryptocurrency prices, such as Bitcoin, fell after the attack, reflecting a shift by investors towards more stable assets.

2️⃣Analysts' Forecasts:

Analysts believe that the extent of the long-term impact of this decline will largely depend on how the situation evolves. If the Iranian response is limited and energy flows continue uninterrupted, concerns may fade quickly. However, any indication of a significant retaliatory response or supply disruptions will keep volatility high and push oil prices and safe-haven assets up.

These events highlight the sensitivity of financial markets to geopolitical developments, especially in the Middle East, which is vital for global energy supplies.