Geopolitical Tensions Jolt Global Markets, Oil Prices Soar

An explosive start to Friday the 13th rocked both European and global markets, as significant events unfolded in Tehran, triggering unexpected market reactions.

Reports suggested that Israel struck Iran's nuclear facilities, causing oil prices to spike, while the U.S. denied any involvement. Despite pre-warnings, market reactions were severe, with oil prices surging by 11% at one point. The incident left market analysts speculating on potential U.S. responses if Iran retaliates, especially with Secretary of State Marco Rubio's assertions of non-involvement from the U.S. Jewish national broadcaster indicated possible prior notifications to Washington about the offensive.

Oil's jump signaled a significant change in market dynamics, as it set the stage for the largest daily gain in half a decade. With Asian trading seeing a rise in gold and treasuries, and Europe and U.S. stock futures dropping, it became clear that defense spending would influence market movements more heavily, with major European defense contractors expected to be notably active.

(With inputs from agencies.)