Asian Markets Tumble, Oil Prices Spike Following Israeli Strike on Iran
- Expert Eyi
- Jun 13
- 3 min read
Asian stock markets slid and global oil prices soared early Friday following Israel’s military strike on Tehran, escalating tensions tied to Iran’s nuclear program and injecting fresh volatility into global financial markets.
Oil Prices Surge Amid Geopolitical Shock
Brent crude, the global oil benchmark, spiked $5.52 to reach $74.88 per barrel, while U.S. benchmark West Texas Intermediate (WTI) crude jumped $5.60, or 8.2%, to $73.61. The surge reflects investor concern over potential supply disruptions in the Middle East, one of the world’s most critical oil-producing regions.
Xu Tiachen of The Economist Intelligence said, “An Israeli attack on Iran poses a top-tier global risk. However, Asian markets may stabilize relatively quickly due to limited direct exposure and strengthening ties with Gulf states like Saudi Arabia and the UAE.”
Asian Stock Indices Decline Across the Board
In early trading, key Asian indices responded to the geopolitical shock with significant losses:
Japan’s Nikkei 225 fell 1.2% to 37,721.63
South Korea’s Kospi dropped 0.7% to 2,900.14
Hong Kong’s Hang Seng slipped 0.4% to 23,929.62
China’s Shanghai Composite shed 0.2% to 3,394.52
Australia’s S&P/ASX 200 declined 0.3% to 8,540.80
Wall Street Climbs on Inflation Optimism
Despite the geopolitical turmoil, U.S. markets closed higher on Thursday amid encouraging inflation data and hopes for Federal Reserve rate cuts:
S&P 500 gained 0.4% to 6,045.26
Dow Jones Industrial Average edged up 0.2% to 42,967.62
Nasdaq Composite rose 0.2% to 19,662.48
Tech giant Oracle led gains with a 13.3% jump after surpassing earnings expectations. CEO Safra Catz signaled optimistic growth in the coming fiscal year.
Boeing Shares Dip After Air India Crash
Boeing stock dropped 4.8% following reports that an Air India Boeing 787 Dreamliner crashed shortly after takeoff from Ahmedabad, India, killing all 242 passengers and crew. The crash occurred five minutes into the flight and landed in a residential area. Investigations into the cause are ongoing.
Bond Yields Fall on Softer Inflation, Labor Market Weakness
Treasury yields dipped as investors digested lower-than-expected inflation at the wholesale level and a rise in jobless claims. The 10-year U.S. Treasury yield fell to 4.35% from 4.41%.
The number of new jobless claims rose slightly above forecasts, with total claims hovering at an eight-month high—potentially signaling a cooling labor market.
Macquarie strategist Thierry Wizman noted, “Absent the uncertainty created by ongoing tariffs, the Fed likely would have resumed rate cuts based on current inflation and employment trends.”
Fed Policy Outlook and Trump’s Trade Uncertainty
The Federal Reserve is expected to hold interest rates steady at its upcoming meeting next week, with traders betting on a rate cut in September. Ongoing uncertainty surrounding President Donald Trump's trade policies and tariff threats has added volatility to the economic outlook.
Trump suggested late Wednesday that countries could soon face an ultimatum on trade agreements, stating, “You can take it or you can leave it.”
IPO and Retail Highlights
Chime Financial soared 37.4% in its Nasdaq debut, positioning itself as a one-stop financial platform.
GameStop plummeted 22.5% after announcing a $1.75 billion capital raise via zero-interest loans convertible to equity.
Currency Update
In Friday's early trading, the U.S. dollar weakened to 143.10 yen, down from 143.46, while the euro dipped slightly to $1.1552 from $1.1590.
Conclusion:The sudden Israeli strike on Iran has injected fresh tension into global markets, prompting a selloff in Asian equities and a spike in oil prices. Meanwhile, optimism over U.S. inflation data and rate cut hopes tempered the risk-off sentiment in Western markets. With geopolitical and trade uncertainties looming, investors face a fragile and fast-moving global landscape.
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