Oil prices have jumped almost 8 per cent, and gold added over 1.15 per cent this morning (Friday) after an Israeli strike on Iran that targeted nuclear facilities, ballistic missile factories, and military commanders.
“Weapons of mass destruction in the hands of the Iranian regime are a threat to the State of Israel and a significant threat to the entire world,” the Israeli Defence Force stated after its attack on Iran. “The State of Israel will not allow a regime whose goal is the destruction of the State of Israel to possess weapons of mass destruction.”
Now, Iran is planning to “give a harsh response” to the Israeli attack, according to Reuters, raising concerns over another all-out war in the region.
Read more on fintechs’ plan in the region: Revolut Eyes Israel Expansion – Engages with Regulator to Become a “Lean Bank”
Oil Jumped Abruptly
The attack escalated the ongoing tensions in the Middle East, which is also one of the world’s largest oil-producing regions.
The markets were swift to react to the impact of the attack. Brent crude futures rose almost 8 per cent to an intraday high of $75.32 a barrel—the highest since 2 April—before cooling off, while West Texas Intermediate crude also jumped almost 8 per cent to its highest level since 3 February.
“The Israeli attack on Iran has heightened the risk premium further,” MST Marquee senior energy analyst Saul Kavonic told Reuters.
“The conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is actually materially impacted,” he continued, adding that Iran could disrupt the supply of up to 20 million barrels per day via attacks on infrastructure or passage through the Strait of Hormuz in an extreme scenario.
Gold and Other Safe Havens
Investors are also moving towards other safe havens amid the Middle East tensions. The price of gold reached almost $3,430 per ounce during Asian trading hours this morning (Friday), adding about 1.15 per cent on the day.
Read more: JPMorgan Predicts Bitcoin to Outperform Gold in H2 2025 Driven by Institutional Adoption
“Gold is up for the second straight day, largely on heightened geopolitical risks,” said Peter Grant, Vice President and Senior Metals Strategist at Zanier Metals. “If gold clears $3,400 again, minor resistance at $3,417 and $3,431 remains—but a breakout to new all-time highs looks likely ultimately.”
The US dollar and safe-haven currencies like the Japanese yen and the Swiss franc also gained significantly following Israel’s “pre-emptive strike against Iran.”
However, US stock futures dropped by 1.5 per cent, and Asian markets experienced a similar decline this morning (Friday). The cryptocurrency markets were also affected by the geopolitical tensions, as Bitcoin fell 3.5 per cent and Ether almost 9.5 per cent.
“While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk-seeking positions ahead of the weekend,” IG Market Analyst Tony Sycamore said regarding the alarming escalation.
Oil prices have jumped almost 8 per cent, and gold added over 1.15 per cent this morning (Friday) after an Israeli strike on Iran that targeted nuclear facilities, ballistic missile factories, and military commanders.
“Weapons of mass destruction in the hands of the Iranian regime are a threat to the State of Israel and a significant threat to the entire world,” the Israeli Defence Force stated after its attack on Iran. “The State of Israel will not allow a regime whose goal is the destruction of the State of Israel to possess weapons of mass destruction.”
Now, Iran is planning to “give a harsh response” to the Israeli attack, according to Reuters, raising concerns over another all-out war in the region.
Read more on fintechs’ plan in the region: Revolut Eyes Israel Expansion – Engages with Regulator to Become a “Lean Bank”
Oil Jumped Abruptly
The attack escalated the ongoing tensions in the Middle East, which is also one of the world’s largest oil-producing regions.
The markets were swift to react to the impact of the attack. Brent crude futures rose almost 8 per cent to an intraday high of $75.32 a barrel—the highest since 2 April—before cooling off, while West Texas Intermediate crude also jumped almost 8 per cent to its highest level since 3 February.
“The Israeli attack on Iran has heightened the risk premium further,” MST Marquee senior energy analyst Saul Kavonic told Reuters.
“The conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is actually materially impacted,” he continued, adding that Iran could disrupt the supply of up to 20 million barrels per day via attacks on infrastructure or passage through the Strait of Hormuz in an extreme scenario.
Gold and Other Safe Havens
Investors are also moving towards other safe havens amid the Middle East tensions. The price of gold reached almost $3,430 per ounce during Asian trading hours this morning (Friday), adding about 1.15 per cent on the day.
Read more: JPMorgan Predicts Bitcoin to Outperform Gold in H2 2025 Driven by Institutional Adoption
“Gold is up for the second straight day, largely on heightened geopolitical risks,” said Peter Grant, Vice President and Senior Metals Strategist at Zanier Metals. “If gold clears $3,400 again, minor resistance at $3,417 and $3,431 remains—but a breakout to new all-time highs looks likely ultimately.”
The US dollar and safe-haven currencies like the Japanese yen and the Swiss franc also gained significantly following Israel’s “pre-emptive strike against Iran.”
However, US stock futures dropped by 1.5 per cent, and Asian markets experienced a similar decline this morning (Friday). The cryptocurrency markets were also affected by the geopolitical tensions, as Bitcoin fell 3.5 per cent and Ether almost 9.5 per cent.
“While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk-seeking positions ahead of the weekend,” IG Market Analyst Tony Sycamore said regarding the alarming escalation.
This post is originally published on FINANCEMAGNATES.
