(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Anna Szymanski

LONDON, June 13 (Reuters) - A look at what matters in

U.S. and global markets today from Mike Dolan, Editor-At-Large,

Finance and Markets

Global equity markets were rattled on Friday and oil prices shot

higher after Israel conducted a military strike on Iran, pushing

investors toward safe havens such as gold and the Swiss franc.

Investors have typically shrugged off Middle East tensions in

recent years, but this latest move has the potential to be a

game changer in the region. I'll provide a quick overview of the

market reactions below and then provide some weekend reading

suggestions from Mike Dolan.

I'm also excited to announce the launch of Reuters Open Interest

(ROI), your essential new source for data-driven global

financial commentary. Follow ROI on LinkedIn and X.

Today's Market Minute

* On Friday, after two decades of continually raising the alarm

and urging other world leaders to act, Israel's Prime Minister

Benjamin Netanyahu finally decided to go it alone, authorising

an Israeli air assault aimed, Israel says, at preventing Iran

from obtaining weapons of mass destruction.

* World stock markets tumbled on Friday and oil prices surged as

Israel launched its strikes, sparking a rush into safe havens

such as gold, the dollar and Swiss franc.

* Rescuers searched for missing people and aircraft debris in

charred buildings in Ahmedabad on Friday after more than 240

people were killed in an Air India Boeing 787 crash, and as

local media reported that India was considering grounding the

airline's 787 fleet for safety checks.

* Israel's strikes on Iran have raised the prospect of global

oil prices hitting $100 a barrel. If Tehran seeks to escalate

the conflict by retaliating beyond Israeli borders, it could

seek to choke off the Strait of Hormuz, the world's most

important gateway for oil shipping, writes ROI Energy Columnist

Ron Bousso.

* At the Federal Open Market Committee meeting next week,

investors will scrutinize all communications for any sign that

the recent softening in U.S. inflation could be enough to nudge

policymakers closer to cutting interest rates. Read the latest

from ROI Markets Columnist Jamie McGeever.

ISRAELI STRIKE HITS CRUDE MARKET

Israel launched widescale strikes against Iran on Friday, saying

it targeted nuclear facilities, ballistic missile factories and

military commanders during the start of a prolonged operation to

prevent Tehran from building an atomic weapon.

Alongside extensive air strikes, Israel's Mossad spy agency

led a series of covert sabotage operations inside Iran, Axios

reported, citing a senior Israeli official. These operations

were aimed at damaging Iran's strategic missile sites and its

air defence capabilities.

Iran launched about 100 drones towards Israeli territory in

retaliation, many of which have already been intercepted,

according to an Israeli military official. Iran denied it had

launched drones, the Fars news agency said.

U.S. Secretary of State Marco Rubio called the Israeli

offensive a "unilateral action" and said that Washington was not

involved.

Market reaction was swift. Crude prices jumped on Friday,

amid fears that Israel's strike could spark additional Iranian

retaliation that could disrupt oil supplies.

Brent crude futures hit an intraday high of $78.50 per

barrel, the highest since January 27, before settling back down

around $74. Meanwhile, U.S. West Texas Intermediate crude

reached a high of $77.62, its highest level since January 21,

before settling back above $73 a barrel.

A key investor concern now will be whether the latest

developments will cause Iran to disrupt transit in the Strait of

Hormuz. About a fifth of the world's total oil consumption

passes through the strait, or some 18 to 19 million barrels per

day (bpd) of oil, condensate and fuel.

As geopolitical tensions rose, Gold climbed as high as

$3,444.06 per ounce, bringing it close to the record high of

$3,500.05 from April.

"Traders are now on edge over the prospects of a full-blown

Middle East conflict," said Matt Simpson, a senior market

analyst at City Index. "That will keep uncertainty high and

volatility elevated."

WEEKEND READING SUGGESTIONS

Here are some articles away from the day-to-day headlines

that you may find interesting.

1. FED FOOTNOTE: Speculation about President Trump's willingness

and ability to remove Federal Reserve Chair Jerome Powell has

stoked concerns about Fed independence all year, though a recent

Supreme Court ruling seemed to clear up the issue. But writing

on the Project Syndicate site, Professor Barry Eichengreen

argues that the footnote in the court ruling that supposedly

protects the Fed came with no legal basis. "The note reads like

a ChatGPT hallucination," he wrote, adding "arbitrarily

exempting the Fed opens the door to arbitrarily not exempting

the Fed." Advocates of Fed independence should be worried, he

concluded.

2. G6 RUSSIAN SANCTIONS: Most G7 countries look set to tighten

sanctions on Russia and push for a lower Russian oil price cap

at next week's summit in Canada regardless of U.S. objections,

according to Reuters' sources. Earlier this month, Brookings

economists Robin Brooks and Ben Harris published a detailed

analysis of why this approach was workable and makes sense.

3. SELF DRIVERS: Reuters' Norihiko Shirouzu shows how BYD shook

up China's smart-EV industry earlier this year by offering its

"God's Eye" driver-assistance package for free, undercutting

Tesla's more expensive technology.

4. SPIES AND CRYPTO: At a time when Europe is in a heightened

state of alarm over Russia's "hybrid war" of sabotage and

espionage, Reuters found that Moscow is increasingly recruiting

teenagers and complete novices in its efforts. A Special Report

by Reuters' Mari Saito, Anna Koper, Anton Zverev, Filipp

Lebedev and Polina Nikolskaya details the case of Canadian

teenager Laken Pavan.

5. COAL AND WATER: April marks the start of the cruelest months

for residents of Solapur, a hot and dry district in western

India. In peak summer, the wait for water taps to flow can

stretch to a week or more. Reuters Krishna N. Das and Sarita

Chaganti Singh show that since 2017 a new 1,320-megawatt

coal-fired power plant run by state-controlled NTPC has started

to compete with residents and businesses for water from the same

reservoir.

Chart of the day

Friday's gains for Brent crude and WTI futures were the

largest intraday moves for both contracts since 2022, when

Russia's invasion of Ukraine caused a spike in energy prices. "A

key question is whether the Iranian retaliation will be limited

to Israel or if the leadership will seek to internationalize the

cost of tonight's action by targeting bases and critical

economic infrastructure across the wider region," RBC Capital

analyst Helima Croft said in a note.

TODAY'S EVENTS TO WATCH

* University of Michigan June consumer survey (10:00 AM

EDT); Canada April manufacturing sales

* European Central Bank board member Frank Elderson speaks

at IMF-WB annual conference for senior supervisors

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.