Equity markets plunged Friday as the U.S. launched military strikes against Iranian military sites, triggering a sharp sell-off in equities and a surge in oil prices. Crude futures surged to $98.60 per barrel, while the VIX soared above 38, signaling heightened market volatility.
- U.S. military strikes on Iranian defense sites triggered a 3.2% drop in the S&P 500 and 4.1% decline in the Nasdaq
- CL=F crude oil futures rose 14.3% to $98.60 per barrel, the highest since early 2023
- The VIX surged to 38.7, up 46% on the day, reflecting elevated market fear
- Apple (AAPL) fell 5.4% amid technology sector-wide selloff
- Defense stocks like LMT and RTX rose over 6% on increased risk premium expectations
- Brent crude reached $104.20, highlighting supply chain disruption risks
Global stock indices plunged in early trading following confirmed U.S. military operations targeting Iranian defense infrastructure. The S&P 500 dropped 3.2%, the Nasdaq Composite fell 4.1%, and the Dow Jones Industrial Average declined 2.9%, with technology stocks leading the selloff. Apple Inc. (AAPL) shed 5.4% amid broad sector-wide losses, reflecting investor concerns over supply chain disruptions and rising risk premiums. The attack triggered a significant spike in energy prices, with Brent crude futures climbing 14.3% to $104.20 per barrel, while West Texas Intermediate (CL=F) reached $98.60, its highest level since 2023. Energy sector ETFs posted gains exceeding 8%, as traders priced in the risk of disrupted exports from the Middle East and potential retaliatory actions by Iran. Market volatility spiked as the CBOE Volatility Index (^VIX) surged to 38.7, up 46% in a single session, indicating heightened fear among investors. The U.S. dollar strengthened slightly against major currencies, as safe-haven demand increased amid the regional escalation. Defense stocks, including Lockheed Martin (LMT) and Raytheon Technologies (RTX), rose over 6%, reflecting anticipated defense spending increases. The geopolitical shock has disrupted global trade flows and raised concerns about inflationary pressures. Analysts warn that prolonged instability in the Strait of Hormuz—through which 20% of global oil passes—could lead to sustained price increases and further market turbulence. Investment flows into gold and long-duration bonds also rose, underscoring a flight-to-safety dynamic.