SINGAPORE, June 14: Global markets reeled Friday as oil prices surged and stocks slumped in the wake of Israel’s overnight strikes on Iran, with traders fearing wider instability in the Middle East and potential disruptions to energy supplies.
Brent crude futures leapt $6.29, or 9.07 percent, to $75.65 a barrel by 0315 GMT, after hitting an intraday high of $78.50 — its highest level since January 27. U.S. West Texas Intermediate crude rose $6.43, or 9.45 percent, to $74.47, having reached $77.62, the loftiest since January 21.
These were the largest intraday gains for both global benchmarks since 2022, when Russia’s invasion of Ukraine sent shockwaves through global energy markets.
“This kind of price action raises the question: is this just another geopolitical knee-jerk reaction, or are we genuinely on the brink of a broader Middle East war?” said Matt Simpson, senior market analyst at City Index in Brisbane, speaking to Reuters.
Meanwhile, stock markets in Asia opened sharply lower, led by a steep decline in U.S. equity futures, as investors shifted toward safe-haven assets. Gold rallied and currencies like the Swiss franc and Japanese yen strengthened amid rising geopolitical risk.
“The heightened geopolitical risks are being strongly felt in the FX market,” said Hirofumi Suzuki, chief FX strategist at SMBC in Tokyo. “With the rise in risk-off sentiment, the Japanese yen is likely to be bought.”
Investor anxiety deepened as Israeli airstrikes reportedly targeted Iranian military and nuclear facilities, killing senior commanders and sparking warnings of severe retaliation from Tehran. The attack has intensified fears of a broader regional conflict with global economic implications, particularly in oil and energy markets.
Markets will now closely watch for any further military responses from Iran and possible shifts in U.S. policy or involvement, as tensions between regional powers threaten to upend fragile economic stability.
