The dollar index — which measures the U.S. dollar against a basket of major rivals — was up 0.2% by 9 a.m. London time on Friday, as investors fled risk-on assets and sought safety.
It’s about 20 minutes since the opening bell, and European shares are selling off as investors react to Israel’s strikes on Iran in the early hours of Friday morning.
The pan-European Stoxx 600 was last seen trading 1% lower, with all sectors except oil and gas in negative territory.
Oil prices surged on Friday after the escalation in the Middle East sparked concerns about supply.
Germany’s DAX was down 1.4% in early trade, while the French CAC 40 was 1.1% lower and London’s FTSE 100 — coming off of a record high — was down 0.5%.
— Chloe Taylor
Investors fled to safe-haven assets Friday after a series of Israeli airstrikes on Iran marked a major escalation of conflict in the region.
The scale of the attack, which Israel said was targeting Iran’s nuclear program, took markets by surprise, pushing up prices of assets thought to offer protection in times of heightened volatility.
“The news has led to significant fears about an escalation and a wider regional conflict,” Deutsche Bank strategists said in a note early Friday. “The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes.”
— Katrina Bishop
Crude oil futures jumped as much as 13% Thursday evening after Israel launched airstrikes against Iran without U.S. support.
U.S. West Texas Intermediate was last up 8.23% at $73.65 per barrel, while global benchmark Brent surged 7.96% to $74.88 per barrel, setting them on course for their largest single-day gains since 2020.
Israel launched a “targeted military operation” against Iran’s nuclear and ballistic missile program, Israel Prime Minister Benjamin Netanyahu said in an address. Israel hit Iran’s main enrichment site at Natanz, its leading nuclear scientists, and struck the heart of its ballistic missile program, Netanyahu said.
— Spencer Kimball, Lee Ying Shan
Good morning from London.
European shares look set to follow global stocks lower today, as investors monitor an escalating situation in the Middle East.
Israel launched a series of airstrikes in Iran in the early hours of Friday morning, killing the chief of the Iranian Armed Forces as well as two of the country’s leading nuclear scientists.
Futures ties to the pan-European Stoxx 600 were last seen 1.2% lower, while those linked to the German DAX index are down 1.7%.
The FTSE 100, which closed at a record high on Thursday, also looks set to move lower, with futures tied to the index down by 0.5%.
— Chloe Taylor