In the early hours of June 13, tension between Israel and Iran escalated sharply, prompting a dramatic shift in global energy markets and prompting fears of a broader regional confrontation. Oil prices surged by more than 7 percent, spiking to their highest levels since early April, as markets reacted to reports that Israel had launched a significant military operation against strategic Iranian sites, including nuclear and military infrastructure.
The effort, dubbed Operation Rising Lion, involved over 200 Israeli fighter jets targeting nearly 100 sites across Iran, among them uranium-enrichment facilities at Natanz and Fordow. According to Israeli military sources, the assault also hit ballistic missile plants, air-defense systems, and residences of senior military personnel. Israel claimed the strikes were a preemptive measure aimed at halting Iran’s nuclear weapons capabilities, citing intelligence that Tehran was approaching a “point of no return” in its nuclear program.
The initial strike reportedly resulted in the deaths of several high-ranking figures in Iran’s Islamic Revolutionary Guard Corps (IRGC), including Major General Hossein Salami and the Chief of Staff, Mohammad Bagheri, along with other senior nuclear scientists. Iran responded swiftly, launching dozens of drones and ballistic missiles toward Israeli targets—many of which were intercepted by Israel’s missile-defense systems. Casualties on both sides included military personnel and civilians.
The escalation spooked global markets. Brent crude futures climbed by over $5, marking a more than 8 percent jump to over $75 per barrel in early trading—the steepest single-day increase seen in over three years. West Texas Intermediate (WTI) also surged by approximately 7 percent to nearly $73 per barrel, with intraday movements approaching 14 percent.
Analysts traced the spike to fears that the Middle East turmoil could disrupt oil shipments through the “chokepoint” of the Strait of Hormuz—through which a significant portion of global petroleum supplies pass—at a time when inventories were already tightening .
Financial markets beyond oil were impacted as well. U.S. stock futures dropped nearly 1 percent, with European share futures similarly retreating as investors moved away from risk assets. The Dow, S&P 500, and Nasdaq all opened lower, reflecting investor flight to safety. Safe-haven assets such as gold and the U.S. dollar gained strength, with gold prices rising by around 1 percent amid concerns of inflation and economic fallout .
Regional authorities also acted swiftly: airspace over Israel, Iran, Iraq, and Jordan was closed, flights were grounded, and countries began evacuating civilians. The United Nations Security Council convened an emergency session; key global leaders—including those from the U.S., UK, France, and Germany—urged restraint, warning that the conflict could spiral out of control.
Israeli Prime Minister Benjamin Netanyahu framed the operation as a necessary “existential” defense measure and pledged to continue strikes as long as required. Iran’s Supreme Leader Ayatollah Ali Khamenei vowed “harsh punishment,” while Iranian officials described the attack as tantamount to a declaration of war.
Investors and policymakers worldwide now face mounting uncertainty, as the potential for prolonged Middle East confrontation fuels further instability in energy prices, global trade, and financial markets. The sudden surge in crude and the broad economic reactions underscore how closely intertwined geopolitics and global markets remain.
