Oil and gold prices surge while stock markets drop due to Israel's attacks on Iran

From Yahoo Finance: 2025-06-13 12:35:00

The price of gold rose by 1.5% to $34,434 an ounce, nearing the record high of $3,500 in April. Oil and gold prices surged while stock markets fell due to Israel’s strikes on Iran. Brent crude rose by over 7% to above $75 a barrel, affecting aviation and prompting investors to turn to safe assets like gold.

The conflict in the Middle East led to a sharp increase in wholesale prices, impacting the aviation industry and stock markets. British Airways owner IAG and airline easyJet saw shares drop, while weapons producer BAE Systems and oil companies BP and Shell gained value amidst escalating tensions.

Stocks plummeted in Asia and major European markets closed at least 1% lower. London’s FTSE 100 ended 0.4% below Thursday’s record high. US markets followed suit, with Wall Street indices falling as airline stocks declined on fears of rising fuel costs from potential oil supply issues.

Israel declared a state of emergency after launching strikes on Iran, citing a “pre-emptive strike” over Tehran’s nuclear program. US Secretary of State Marco Rubio called it a “unilateral action” with no US involvement. The move to safe haven assets caused the yield on 10-year US Treasury notes to fall to a one-month low.

Concerns have risen in the maritime supply chain over potential conflict between Israel and Iran, which could lead to the closure of key sea lanes like the strait of Hormuz. UK-flagged ships were advised to avoid certain areas, and disruptions could impact global trade and lead to higher shipping rates.

Energean, a UK gas producer, temporarily suspended production activities off the coast of northern Israel following recent geopolitical escalation in the region. The move comes as tensions rise between Israel and Iran, impacting various sectors and global trade routes.

Read more: Oil and gold prices soar and stock markets fall after Israel’s attacks on Iran