Oil prices surge after Israel's strike on Iran

The Associated Press

· Posted: Jun 13, 2025 9:01 AM EDT | Last Updated: 1 hr ago

Oil surged, stocks fell and investors sought information successful the U.S. dollar and authorities bonds Friday aft Israel struck Iranian atomic and subject targets successful an onslaught that raised the hazard of warfare betwixt the 2 countries and broader instability successful the Middle East. 

The S&P 500 was down 0.9 per cent in greeting trading. The Dow Jones Industrial Average was down 601 points, oregon 1.4 per cent, arsenic of 10:05 a.m. ET, and the Nasdaq composite was 0.9 per cent lower.

U.S. benchmark crude lipid roseate by $4.73 US, oregon 6.9 per cent, to $72.77 per barrel, its biggest summation since the aboriginal days of Russia's onslaught connected Ukraine much than 3 years ago. Brent crude, the planetary standard, climbed $4.58 to $73.94 per barrel, besides the largest single-day leap since the Russian invasion.

Oil prices are apt to emergence successful the abbreviated word but the cardinal question is whether exports are affected, said Richard Joswick, caput of near-term lipid astatine S&P Global Commodity Insights.

"When Iran and Israel exchanged attacks previously, prices spiked initially but fell erstwhile it became wide that the concern was not escalating and determination was nary interaction connected lipid supply," helium wrote successful an emailed analysis. 

"Oil terms hazard premiums could emergence sharply if Iran conducts broader retaliatory attacks, particularly if connected targets different than successful Israel," Joswick said. 

China is the lone lawsuit for Iranian lipid but could question alternate supplies from Middle Eastern exporters and Russia, helium said.  Iran's lipid commercialized is restricted by Western sanctions and import bans, and Israel exports lone tiny amounts of lipid and lipid products. 

The output connected the 10-year Treasury fell to 4.35 per cent from 4.41 per cent late Wednesday and from astir 4.80 per cent early this year. Treasury bonds and the dollar often emergence erstwhile investors consciousness little inclined to instrumentality risks.

Goldman Sachs, successful a enactment connected Friday, said portion it has incorporated a higher geopolitical hazard premium into its adjusted summertime 2025 lipid terms outlook, it continues to presume nary disruptions to Middle East lipid proviso aft Israel's attacks connected Iran.

"The cardinal question present is whether this lipid rally volition past longer than the play oregon a week — our awesome is that determination is simply a little probability of a full-blown war, and the lipid terms rally volition apt brushwood resistance," said Janiv Shah, expert astatine Rystad.

"Fundamentals amusement astir each Iranian exports going to China, truthful Chinese discounted purchases would beryllium astir astatine hazard here. OPEC+ spare capableness tin supply the stabilizing force," helium added.

In different markets, stocks dived and determination was a unreserved to harmless havens specified arsenic golden and the Swiss franc.

An summation successful lipid prices would besides dampen the outlook for the German economy, the economical institute DIW Berlin said connected Friday. It is the lone G7 federation that has recorded nary economical maturation for 2 consecutive years.