Oil Prices Surge, Global Stocks Slide as Israel Bombs Iran Nuclear Sites
Wafric News - June 13, 2025
Global markets reeled on Friday after Israeli warplanes struck Iranian nuclear and military installations, triggering immediate fears of a full-scale conflict in the Middle East and sending investors scrambling for safe havens.
Crude oil prices spiked by more than 12% at one point — reaching levels not seen since January — while equity markets across Asia and Europe tumbled. Safe assets like gold and government bonds surged, signaling rising alarm over regional instability and potential disruptions to global energy supply chains.
At the heart of the crisis: Israel's direct military action against Iran’s nuclear enrichment site at Natanz and its ballistic missile infrastructure. Israeli Prime Minister Benjamin Netanyahu said the mission was aimed at neutralizing what his government sees as an imminent nuclear threat.
“This operation will continue for as many days as it takes to remove this threat,” Netanyahu said in a televised statement. “We struck at the heart of Iran’s nuclear enrichment programme… and targeted scientists working on the Iranian bomb.”
According to Israeli army officials, intelligence indicated that Iran was nearing the “point of no return” in its atomic development, potentially acquiring nuclear weapon capability “in a short period of time.”
Tehran Vows Retaliation as Tensions Escalate
Iran responded with fury. Supreme Leader Ayatollah Ali Khamenei issued a stern warning, calling the Israeli assault a “crime” that would be met with a “bitter and painful fate.”
Iran’s foreign ministry accused Washington of complicity, saying such an attack “could not have occurred without U.S. coordination or permission,” and warned the U.S. would be held “responsible for the consequences.”
Although U.S. officials have denied involvement, former President Donald Trump admitted the risk of “massive conflict” in the region was growing. His administration had been pursuing a nuclear deal with Tehran, but Trump acknowledged that Israel’s attack may derail progress.
“We were fairly close to an agreement. This strike could help it — or blow it apart,” Trump said.
Markets React: Oil Jumps, Equities Tumble
Brent crude surged to over $73 a barrel, while West Texas Intermediate (WTI) jumped to $71.75 — both up more than 5% by mid-morning trading. Though Iran later clarified that its key oil refineries were undamaged, supply fears kept energy prices elevated.
“The Middle East powder keg just blew the lid off global markets,” said Stephen Innes, strategist at SPI Asset Management. “If the Strait of Hormuz is drawn into this conflict, we could easily see crude gain another $15 per barrel.”
Meanwhile, stock exchanges in Tokyo, Shanghai, Hong Kong, and London posted declines. U.S. futures pointed sharply downward ahead of the opening bell. Gold climbed above $3,400 an ounce as risk-averse investors sought shelter.
JPMorgan Chase this week warned that in a worst-case scenario involving attacks on shipping routes, oil prices could soar beyond $130 a barrel — a grim prospect for already fragile global economies.
Macroeconomic Fallout Looms
Friday’s market chaos comes on the heels of growing investor anxiety over resurgent trade tensions, with Trump signaling that fresh tariffs on foreign imports may be announced within two weeks. Analysts fear the combined impact of trade conflict and Middle East escalation could derail recovery plans in several emerging markets, especially those heavily dependent on fuel imports.
African economies with high fuel import bills — such as Ghana, Kenya, and Senegal — could feel the inflationary pinch within weeks if oil prices remain high. Meanwhile, South Africa’s mining-linked equities may benefit from gold’s spike, though overall market volatility is expected to weigh on the rand and investor sentiment.
Market Snapshot (As of 08:10 GMT)
- WTI Crude: +5.4% at $71.75 per barrel
- Brent Crude: +5.4% at $73.11 per barrel
- Gold: Above $3,400 per ounce
- Tokyo (Nikkei 225): –0.9% at 37,834.25 (close)
- Hong Kong (Hang Seng): –0.6% at 23,892.56 (close)
- Shanghai Composite: –0.8% at 3,377.00 (close)
- London (FTSE 100): –0.5% at 8,838.12
- US Dollar/Yen: Up at 143.76
- Euro/Dollar: Down at $1.1542
- Pound/Dollar: Down at $1.3564
Stay with Wafric News for continuing coverage of the Middle East crisis and its impact on African and global markets.
By Wafric News Business Desk
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