Oil Prices Surge 11% After Israeli Strikes on Iran

Oil jumped more than 11% early Friday, heading for its biggest daily gain in over five years after Israel launched major airstrikes on Tehran, targeting nuclear and military sites. Gold and US Treasuries rose sharply, while European and US stock futures pointed to declines of around 1.5%, with the FTSE 100 futures down less than 0.5%. US Secretary of State Marco Rubio said Washington was not involved in the strikes, though reports suggested prior notification had been given.

Equities

The FTSE 100 rose 0.2% on Thursday to close at a record high of 8,884.92, lifted by strength in energy and mining shares. Energy stocks added 1.4%, supported by gains in oil prices, while gold miners climbed 3.2% as investors moved into safe haven assets. Healthcare shares also advanced, rising 1.2%.

Among UK-listed companies, Tesco added 1.6% after reporting stronger-than-expected growth in first-quarter sales. The retailer said it had increased market share and saw solid performance across its core grocery business. Management pointed to competitive pricing and improved customer loyalty as drivers of the gains.

Halma rose 3.3% after it upgraded its revenue guidance for the year ahead and posted annual profits above expectations. The group, which makes safety and environmental monitoring equipment, said it had seen strong demand across several of its business units.

Meanwhile, the FTSE 250 slipped 0.2%, and other major European indices fell back slightly amid geopolitical concerns and ongoing trade tensions.

In the US, the S&P 500 gained 0.38% to end at 6,045.26. The Nasdaq rose 0.24% to 19,662.49, and the Dow Jones also added 0.24% to finish at 42,967.62. A 13.3% surge in Oracle shares helped lift the market after the company raised its annual revenue forecast. Oracle said demand for its artificial intelligence-related cloud services was driving growth, and investors responded positively to its outlook.

Other large tech stocks were also higher. Microsoft, Nvidia and Broadcom all rose more than 1%, helped by investor enthusiasm around AI infrastructure spending. Microsoft is seen as a key beneficiary of enterprise AI adoption, while Nvidia continues to dominate the market for high-performance AI chips.

Boeing shares fell after a crash involving an Air India aircraft added to the company’s ongoing safety concerns. The stock was among the worst performers in the Dow.

Forex & Commodities

The US dollar rose sharply on Friday after Israel launched air strikes on Iranian nuclear and military sites, prompting investors to move into traditional safe-haven assets. The dollar index climbed 0.4% to 98.07, recovering from its lowest level since March 2022 earlier in the week.

The Japanese yen and Swiss franc both strengthened against the dollar, up 0.3% and 0.4% respectively. The euro slipped 0.3% to $1.155, while the Australian and New Zealand dollars dropped 0.9%, reflecting weaker appetite for risk-linked currencies.

Gold prices surged to their highest level in nearly two months. Spot gold rose 1.2% to $3,423.30 an ounce and was up over 3.4% for the week. US gold futures gained 1.2% to $3,444.50. The rise came as investors responded to the escalation in Middle East tensions. Other precious metals also gained over the week, despite a slight pullback on the day—silver slipped 0.3%, platinum lost 1%, and palladium edged down 0.5%.

Oil prices jumped more than 9%, with Brent crude rising $6.29 to $75.65 a barrel and WTI climbing $6.43 to $74.47. Both contracts hit their highest levels since January after Israel said it had struck Iran’s nuclear and missile infrastructure. Traders flagged the risk of disruption to oil shipments through the Strait of Hormuz, which handles a significant share of global crude flows.