Dow futures down 420 points after Israel strikes Iran, spiking oil prices

Oil surged as much as 13% before paring gains, after Israel carried out waves of strikes against Iran, raising fears of a wider war in a region that accounts for a third of global crude production.

Brent topped $78 a barrel in the biggest intraday jump since March 2022, in the wake of Russia’s invasion of Ukraine, before paring some of the gains. Prompt timespreads widened, with the shape of the futures curve pointing to fears of a drawn-out conflict, while volatility surged. Gold was a beneficiary of haven demand, pushing toward a record.

Israeli Prime Minister Benjamin Netanyahu said the attacks targeted Tehran’s nuclear program and military, and would last until the threat was removed. Iran vowed to make a severe response, with Supreme Leader Ayatollah Ali Khamenei saying several commanders and scientists had been killed. Hours after the first Israeli strikes, Tehran launched more than 100 drones in reply, Israel said.