Oil Prices Surge, Stocks Drop After Israeli Attack on Iran
Oil hits five-month high as Israel-Iran conflict rattles markets; global stocks fall, defense shares rise, and airlines take a sharp hit.
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Oil prices surged almost nine percent on early Friday morning, June 13, the highest level they reached in almost five months, after Israel's strikes on Iran.
Brent was trading up to 8.38 percent to $77.17 a barrel at 9:00 a.m. UAE time, while West Texas Intermediate increased by 8.76 percent to $74 a barrel.
Oil futures increased by more than 12 percent in the early hours of Friday, with prices jumping over 13 percent after Israel's strikes began.
On the other hand, US stocks further dropped after Israel's attacks, joining the decline across the global markets.
Dow futures decreased by 750 points, or 1.74 per cent, S&P 500 futures decreased by 1.87 percent, and Nasdaq Composite futures dropped by 1.90 per cent.
Japan's Nikkei 225 dropped by 1.33 per cent, while South Korea's Kospi decreased by 1.11 percent.
Defense stocks gained after Israel's attacks, such as Lockheed Martin increased by 2.7 percent, and General Dynamics increased by 1.4 percent.
However, airline shares dropped; for example, Delta Air Lines fell 4 percent and American Airlines dropped by 4.8 percent. European airline shares suffered too because Easyjet, British Airways' parent IAG, and Lufthansa dropped by more than 3.5 percent.
This article was previously published on UAE Moments. To see the original article, click here