Oil prices skyrocketed and stock prices fell on Friday after Israel hit a strike against Iran’s top officials and nuclear locales.
The global benchmark Brent crude price rose more than 8%, the highest level since early April, to nearly $74 per barrel. Major stock indexes fell by more than 1% in pre-market trading as investors rated wider fallout from the conflict as initially restricted.
Gold prices also hit a new monthly high, rising to over 1% to $3,440 per ounce. Bitcoin prices fell almost 1% to under $105,000. US bond prices have largely remained unchanged.
Israel began a strike in Iran early on Friday. This is a dramatic escalation of long-term tensions between the two countries. Israeli officials have warned of a “long operation,” but President Donald Trump said “more things will come” from Israel and said Iran should make a deal. So far, Iran has retaliated for launching drones at Israel, while also threatening US assets in the region.
Surges in oil prices usually show rising consumer gas prices in the coming days and weeks, but experts said there is no need to rush to the pump.
“Gas prices are high. But that’s not insane and ultimately, gas prices will remain an affordable income,” said Patrick de Haan, head of oil analysis at price tracker Gasbuddy, in a post on X.
Rising oil prices could blow away inflation and complicate the calculations of the Federal Reserve as they continue to compare weaker job markets with fears about the price impact of Trump’s tariffs.
Stocks appeared to be heading into victory week after the Trump administration showed renewed interest in a settlement with China over trade concerns before the strike. The president plans to stabilize import duties on Chinese goods at 55%, but said the US import obligation to China will be set at 10%.
