LONDON: World stock markets fell on Friday, and oil prices surged, as Is­­rael launched military stri­­kes on Iran, sparking inflows into safe havens such as gold and the dollar.

An escalation in the Middle East — a major oil-producing region — adds uncertainty to financial markets at a time of heightened pressure on the global economy from US President Donald Trump’s unpredictable trade policies.

Brent crude oil prices were last up 5.5pc at $73.22 per barrel , having jumped as much as 14pc during Asian trading hours. They were set for their biggest one-day jump since 2022, when energy costs spiked after Russia’s invasion of Ukraine. US oil futures rose 7.3pc to around $73.

Gold, a safe haven in times of global uncertai­nty, rose 1.1pc to $3,422 per ounce, bringing it close to the record high of $3,500.05 from April.

The rush to safety was matched by a dash out of risk assets. The Dow Jones Industrial Average fell 0.9pc, the S&P 500 dropped 0.34pc, and the Nasdaq Composite lost 0.4pc. European shares dro­pped almost 1pc, and in Asia, major bourses in Japan, S. Korea and Hong Kong fell over 1pc each.

“The re-emergence of major conflict in the Mi­­d­dle East should raise geopolitical stress, inclu­ding sharply higher oil prices,” Sameer Samana, head of global equities and real assets at Wells Fargo In­­v­estment Institute, said in an email. Samana added, though, that the conflict should represent a buying opportunity for long-term investors, including in US large-cap stocks and commodities.

Treasuries initially ben­efited from the rush for safer assets, but as the day wore on, investors’ focus turned to the inflationary impact of higher oil prices. US 10-year Treasury yie­­lds were last up 6.7 ba­­sis points at 4.42pc, having touched a one-month low of 4.31pc. Bond yields move inversely to prices.

The euro was down 0.2pc at $1.15, after rising on Thursday to the highest since October 2021.

Published in Dawn, June 14th, 2025