Stocks fell sharply early Friday after Israel launched a wave of airstrikes on Iran, escalating geopolitical tensions and triggering a flight to safety that sent energy prices higher.
The Dow Jones Industrial Average dropped 469 points, or nearly 1.1%. The S&P 500 declined 0.6%, while Nasdaq 100 lost 0.8%, weighed down by losses in high-growth names.
Nvidia, Tesla, and other stocks that have led the market’s rebound from April lows pulled back as investors reduced exposure to risk.
In contrast, oil and defense stocks advanced. Shares of ExxonMobil and Chevron gained over 2% and 1%, respectively, while Lockheed Martin rose about 3%.
The selloff followed a statement from Israeli Defense Minister Israel Katz, who declared a special state of emergency after strikes on Iranian targets.
Crude prices surged in response, with Brent and West Texas Intermediate futures climbing more than 8%. WTI approached $74 per barrel.
Safe-haven assets also rallied. The US dollar strengthened and gold rose over 1% as investors sought protection from the mounting geopolitical risks.
Iran-Israel conflict
Iran launched more than 100 drones toward Israel early Friday, following a wave of Israeli missile strikes that killed several high-ranking Iranian military officials, including the Chief of Staff of the Armed Forces, the Commander of the Islamic Revolutionary Guard Corps (IRGC), and the head of Iran’s Emergency Command.
“We can now confirm that the Chief of Staff of the Iranian Armed Forces, Commander of the IRGC, and the Commander of Iran’s Emergency Command were all eliminated in the Israeli strikes across Iran,” said Israel Defense Forces spokesperson Effie Defrin.
“Iran launched approximately 100 UAVs towards Israeli territory, which we are working to intercept.”
The Israeli offensive, reportedly targeting nuclear enrichment sites, marks the largest attack on Iran since the Iran-Iraq War in the 1980s and comes just days ahead of a planned sixth round of nuclear talks between the US and Iran.
Jordanian state media confirmed that several Iranian drones were intercepted over its territory, with sirens sounding across the country’s north.
Iranian news agency Tasnim reported additional Israeli strikes Friday afternoon on a military airbase in the city of Tabriz.
Around the same time, US President Donald Trump posted his first public comments on the escalating crisis via Truth Social, warning Iran to return to the negotiating table.
“I gave Iran the opportunity to make a deal,” Trump wrote. “I told them, in the strongest terms, ‘Just do it.’ But no matter how hard they tried, and how close they got, they just couldn’t do it.”
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