Global markets flipped on Tuesday after Israel ordered immediate military action against Tehran, blaming Iran for firing missiles after a ceasefire had already been declared.
Three civilians were confirmed dead after a missile slammed into a building in Be’er Sheba, a southern Israeli city. The projectile was part of four consecutive volleys fired early Tuesday, hours after US President Donald Trump announced what was supposed to be a ceasefire agreement between both sides.
Israel Katz, the Israeli defense minister, said:
“I have instructed the military to continue high-intensity operations targeting regime assets and terror infrastructure in Tehran.”
Iran, on the other hand, claimed no missiles were launched after the truce was declared. The denial came from ISNA, a student-run Iranian news outlet, which said reports of Iranian strikes post-ceasefire were false.
Still, the damage inside Be’er Sheba was real, and Israeli paramedics on the scene confirmed the deaths of three civilians. Katz said the strike was a violation of the agreement declared by “the President of the United States.”
Israel confirms renewed military operations as stocks rally worldwide
Benjamin Netanyahu, the Israeli prime minister, backed Katz’s decision and said the previous airstrikes carried out by Israel on June 13 had already fulfilled their objective. That objective, according to Netanyahu, was to “destroy Iran’s nuclear program and missile capabilities.” He also said:
“Israel thanks President Trump and the United States for their support in defense and their participation in eliminating the Iranian nuclear threat.”
Despite the violence, global markets didn’t collapse. In fact, they surged. As reported by Reuters, the Stoxx Europe Travel and Leisure Index jumped 4% early in the day. Big names in the leisure and airline space led gains. EasyJet stock shot up 6.5%, InterContinental Hotels gained 3.3%, and Carnival advanced 5.9%. That optimism wasn’t isolated to Europe.
Asia followed suit with similar momentum. The Nikkei 225 in Japan climbed 1.17%, while the Topix Index saw a 0.75% increase. South Korea’s Kospi index rose 2.71%, and the Kosdaq was up 1.96%. Over in Australia, the S&P/ASX 200 gained 1%. Chinese and Hong Kong markets also recorded gains, with the Hang Seng index moving up 1.91%, and the CSI 300 climbing 1.13%.
American markets moved higher too, led by Trump’s ceasefire announcement, which was still being priced in before news of Israel’s counterattack came out. Dow futures rose 134 points, or 0.3%, while S&P 500 futures went up 0.4%.
Nasdaq 100 futures added 0.6%. On Wall Street, the closing bell showed major strength. The Dow Jones Industrial Average ended up 374.96 points higher, at 42,581.78, a gain of 0.89%. The S&P 500 closed at 6,025.17, up 0.96%, while the Nasdaq Composite finished at 19,630.97, climbing 0.94%.
Currency swings, crypto surges, and oil sinks as ceasefire cracks
Currency markets didn’t stay quiet. A sharp fall in oil prices gave the yen and euro room to rally, as both Japan and the EU are major importers of crude. The US dollar dropped 0.75% against the yen, hitting 145.03. The euro gained 0.27%, landing at $1.1609, not far from its October 2021 high of $1.1632. The dollar index dropped 0.14% to 98.09, extending a decline of more than 0.5% from the day before.
Commodities-importing nations saw their currencies strengthen. The Australian dollar rose 0.7% to $0.6506, and the New Zealand dollar increased 0.75% to $0.6025. The Israeli shekel also surged 1.5% against the dollar, reaching its strongest level since February 2023, despite the missile strike in Be’er Sheba and looming airstrikes in Tehran.
Crypto traders also joined the party. Bitcoin was up 2%, trading at $105,832, while ether jumped 3.2% to $2,425. The biggest decline came in oil though. US crude prices dropped 2.35% to $66.9 per barrel, while Brent crude slid 2.25% to $69.87. These are the lowest levels seen since June 13, the day Israel first launched its airstrike on Iran.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
