Oil prices briefly surged and stock markets slid Friday on reports Israel had carried out retaliatory strikes against Iran, boosting investments deemed safer such as gold.Iran’s state media reported explosions in the central province of Isfahan on Friday, as US media quoted officials saying Israel had carried out retaliatory strikes against its arch-rival.
“US markets will not have the opportunity to react directly to the developments until later, but the escalation will put pressure on the main indices, which were already lining up for a weekly drop.”Crude oil prices dropped, having briefly surged as much as four percent on worries about supplies from the oil-rich region.
Israel had warned it would hit back after Iran fired hundreds of missiles and drones at Israel almost a week ago, in retaliation for a deadly strike — which Tehran blamed on its foe — that levelled Iran’s consular annex at its embassy in Syria. The mood among traders was already downbeat as they contemplated the prospect of the Federal Reserve staying pat on US interest rates this year following data showing jobless claims came in below expectations while a gauge of business activity hit a two-year high.