Market Turmoil: Rising Tensions in the Middle East Roil Global Stocks

U.S. stock index futures dipped following Israel's military action against Iran, escalating Middle East tensions. Oil prices soared, impacting energy and airline stocks. Defense stocks climbed. Both Israel and Iran intensified rhetoric, with implications for global markets and potential U.S. involvement. Market volatility increased, though the S&P 500 remained near recent highs.

Global financial markets were rattled on Friday as U.S. stock index futures fell sharply in response to military actions in the Middle East. Israel's strikes on Iran's nuclear sites heightened geopolitical tensions, significantly impacting investor sentiment worldwide.

Oil prices experienced a notable surge of nearly 9%, leading to gains in energy stocks, with industry giants Chevron and Exxon recording advancements before the market opened. The U.S. distanced itself from the conflict, yet President Donald Trump held Iran accountable, suggesting further hostilities could follow. Meetings between U.S. and Iran officials in Oman remained on track.

The ripple effect of rising crude prices raised concerns for airlines, resulting in stock declines for major carriers. Conversely, defense stocks showed strength amid the geopolitical unrest. As market participants sought refuge, gold prices climbed, benefiting mining stocks. Despite nervous trading, the S&P 500 and Nasdaq indices are within reach of past record levels.

(With inputs from agencies.)