04:25 PM EDT, 06/13/2025 (MT Newswires) -- US benchmark equity indexes closed lower on Friday as the Israel-Iran conflict escalated, jolting the Middle East and driving oil prices higher.

The Nasdaq fell 1.3% to 19,406.83, the S&P 500 decreased 1.1% to 5,976.97, and the Dow Jones Industrial Average dropped 1.8% to 42,197.79. Among sectors, financials and technology led the decliners, with energy as the lone gainer.

July West Texas Intermediate crude oil increased 7.6% to $73.21 a barrel on Friday.

Israel attacked Iran in the early hours of Friday local time, targeting military infrastructure and nuclear facilities, media outlets reported. An escalation in the Israel-Iran conflict may drive oil prices above $80 a barrel, ING Bank said.

"If Iran's retaliation is limited, focusing only on Israeli military sites, as seen in past episodes, price increases may remain contained and temporary," said Rystad Energy, a research company. "But if Iran escalates by disrupting oil flows through the Strait of Hormuz, attacking regional energy infrastructure, or targeting US military assets, prices could spike much more sharply."

US Treasury yields rose with the 10-year rate increasing 4.4 basis points to 4.41% and the two-year rate gaining 4.2 basis points to 3.96%.

In economic news, US consumer sentiment improved more than expected in June, while year-ahead inflation expectations dropped to the lowest 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," said Joanne Hsu, the director of Surveys of Consumers at the university. "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, Visa (V) shares fell 4.9% and Mastercard ( MA ) dropped 4.6% as Walmart (WMT), Amazon.com (AMZN), Expedia (EXPE), and several major airlines weighed plans to launch their own stablecoins, The Wall Street Journal reported.

Oracle (ORCL) shares jumped 7.7%, the top gainer on the S&P. Mizuho and Argus raised the price targets on the stock, while William O'Neil initiated coverage with a buy rating.

CF Industries ( CF ) shares rose 6.5%, the second-biggest advance on the S&P, even after Wolfe downgraded the stock to peer perform from outperform.

Gold increased 1.5% to $3,454.30 per troy ounce, while silver rose 0.1% to $36.31 per troy ounce.