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US Equity Futures, Markets Sink as Middle East Escalation Fears Loom
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US Equity Futures, Markets Sink as Middle East Escalation Fears Loom
Jun 13, 2025 6:08 AM

08:50 AM EDT, 06/13/2025 (MT Newswires) -- US equity futures and global markets stumbled pre-market Friday, while oil and safe havens surged following Israel's attack on Iranian nuclear and military sites.

Dow Jones Industrial Average futures fell 0.9%, S&P 500 futures were down 0.8%, and Nasdaq futures were trading 1.1% lower before the opening bell.

Israel struck at least 10 nuclear and military sites across Iran, killing heads of the country's military leadership and damaging military and atomic technology capabilities, Iranian state news outlets reported. The attack came ahead of a scheduled sixth round of negotiations between Washington and Tehran over Iran's nuclear program that is now very much in question.

US President Donald Trump urged Iran to make a deal to avoid more "slaughter," but Iran's foreign ministry described the Israeli onslaught as a "declaration of war," according to AFP, and counter-attacked with a barrage of drones that Israel said it largely blocked.

Israel "should anticipate a severe punishment," Iran's Supreme Leader Ali Khamenei said in a post on the X social media outlet.

Israeli Prime Minister Benjamin Netanyahu vowed more days of attacks, while Iran has threatened to target American assets in the region as part of its response, even after the US claimed it had no direct involvement in the Israeli operation.

Oil prices surged on fears of a wider Middle East conflict, with the front-month global benchmark North Sea Brent crude up 8.0% to $74.90 per barrel and US West Texas Intermediate crude 8.4% higher at $73.77 per barrel.

Gold rose 1.3% to more than $3,427 per ounce, and Bitcoin advanced 1.9% to above $105,000 as investors sought safe havens.

Global markets were overwhelmingly in the red on reverberating war fears. Japan's Nikkei 225 closed down 0.9%, Hong Kong's Hang Seng fell 0.6%, and the Shanghai Composite finished 0.8% lower.

In Europe, London's FTSE 100 was down 0.4% while Germany's DAX was 1.5% lower. France's CAC 40 declined 1.1%, and Spain's IBEX 35 was down 1.5% in the afternoon trading session.

US markets may also react to the June report on consumer sentiment, to be released shortly after the opening bell. Analysts expect a slight recovery in consumer optimism to 53.5 after a decline to 52.2 in May.

Later in the day, the weekly Baker Hughes North American rig count report will be released, an indicator of supply and demand in the energy sector.

In equities, oil and energy stocks were winners pre-bell with Robin Energy ( RBNE ) up 192%, Houston America Energy (HUSA) up 60%, and Indonesia Energy ( INDO ) advancing 35%.

Among losers were Archer Aviation ( ACHR ) , down 16% following news it was initiating an $850 million equity offering, and SharpLink Gaming ( SBET ) , down 67% after announcing a secondary offering of 58.7 million shares.

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