Stock futures were falling early Friday after Israel launched an attack on Iran’s nuclear program and military leadership, ratcheting up geopolitical tensions in the Middle East.
Futures tracking the Down Jones Industrial Average plummeted 531 points, or 1.2%. S&P 500 futures dropped 1.3%, and contracts tied to the Nasdaq 100 tumbled 1.4%.
Oil prices surged by the most since October as traders reacted to Israel’s surprise strike. The Brent international benchmark jumped 5% to $72.81 a barrel, and West Texas Intermediate U.S. crude soared 5% to $71.45 a barrel.
Gold rose 1% to $3,436 per Troy ounce, putting the precious metal on course to settle at an all-time high as the geopolitical crisis sent investors flocking to safe havens. The U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.2%.
Israeli Prime Minister Benjamin Netanyahu said in a seven-minute video that the military operation, called “Rising Lion,” could last “as many days as it takes.” Iran’s Supreme Leader Ayatollah Ali Khamenei said Israel “should expect severe punishment” for the attacks.
Israel said that Iran had launched 100 drones toward Israeli territory in response to the attacks.