05:02 PM EDT, 06/13/2025 (MT Newswires) -- US equity benchmarks declined Friday, while oil prices climbed after Iran launched retaliatory missiles into Israel.

The Dow Jones Industrial Average slumped 1.8% to 42,197.8, while the Nasdaq Composite fell 1.3% to 19,406.8. The S&P 500 declined 1.1% to 5,977. Energy stocks gained, while all other sectors ended in the red.

For the week, the three major indexes declined following two back-to-back weekly gains. The Dow shed 1.3%, while the Nasdaq and S&P 500 dipped 0.6% and 0.4%, respectively.

West Texas Intermediate crude oil was up 8.1% at $73.53 a barrel, heading for its second straight weekly rise.

Iran fired ballistic missiles at Israel on Friday, in response to Tel Aviv's airstrikes targeting Tehran's nuclear facilities and military infrastructure, CNBC reported, citing Iran's state news agency and Israel Defense Forces. Israel's attack killed Mohammad Hossein Bagheri, chief of the Iranian Armed Forces, and Hossein Salami, the commander-in-chief of Iran's Islamic Revolutionary Guard Corps, according to media reports.

"The boiling over of tensions in the Middle East, with Israel striking Iran, has abruptly injected yet a new source of risk into an already fraught global economic outlook," said Douglas Porter, chief economist at BMO Financial Group.

ING Bank previously said that an escalation in the Israel-Iran conflict that leads to a loss of Iranian oil flows could drive oil prices toward $80 a barrel, potentially reaching $120 if shipping through the Strait of Hormuz is also impacted.

US President Donald Trump urged Iran to reach a nuclear deal with Washington.

Treasury yields were higher, with the 10-year rate rising 4.7 basis points to 4.42% and the two-year rate increasing 4.4 basis points to 3.96%.

In economic news, US consumer sentiment improved more than expected in June, while year-ahead inflation expectations dropped to their lowest level in three months, preliminary results from a University of Michigan survey showed.

"Consumers' fears about the potential impact of tariffs on future inflation have softened somewhat in June," according to Joanne Hsu, Surveys of Consumers' director. "Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that trade policy may still contribute to an increase in inflation in the year ahead."

In company news, Adobe (ADBE) shares slumped 5.3%, among the top decliners on the S&P 500. The software maker will likely need more time to reap the benefits of its strategy aimed at driving demand amid rising competition concerns in generative artificial intelligence, RBC Capital Markets said.

Late Thursday, Adobe posted fiscal second-quarter results that beat market expectations, prompting it to raise its full-year outlook.

Visa (V) fell 5%, the second-worst performer on the Dow, while Mastercard ( MA ) slid 4.6%. Walmart ( WMT ) , Amazon.com ( AMZN ) , Expedia ( EXPE ) , and several major airlines have been weighing plans to launch their own stablecoins, The Wall Street Journal reported.

RH (RH) shares jumped 6.9%. The home furnishing retailer late Thursday unexpectedly swung to fiscal first-quarter earnings and reiterated its full-year revenue growth outlook despite macroeconomic and tariff-related uncertainties.

Gold was up 1.5% at $3,452.4 per troy ounce, while silver rose 0.1% to $36.35 per ounce.