Markets React to Israeli Attack on Iran: Oil Up, Bitcoin Down

In the early hours of Friday, June 13, the Israeli Air Force bombed dozens of targets in Iran. In response to the attack, which allegedly targeted nuclear facilities and Iranian generals, oil and gold prices are rising on global markets, while cryptocurrency prices are falling. In this updated thread, we will be following the market's reaction to news from the Middle East.

Israel attacked Iran, launching Operation Rising Lion. Prime Minister Benjamin Netanyahu announced that the bombings, carried out in the early hours of Friday, June 13, were a preemptive strike, aimed at preventing Iran from acquiring a nuclear weapon that would threaten Israel's existence. Iranian media reported dozens of explosions.

Israeli bombs hit the headquarters of the Islamic Revolutionary Guard Corps in Tehran, among other places. Iran's state news agency said several high-ranking military officials were killed, including Maj. Gen. Hossein Salami, leader of the elite Revolutionary Guard, and the chief of staff of the Iranian armed forces, Maj. Gen. Mohammad Bagheri.

At around 4:15 a.m., the Natanz nuclear power plant in central Iran was hit, one of the country's two main nuclear power plants. In addition, Israel's targets were uranium enrichment plants and ballistic missile production facilities located in the city. In addition to military targets, Iranian media reported that residential areas in Tehran were also hit, with casualties including children.

Iran has vowed to retaliate. US Secretary of State Marco Rubio has announced that Israel has taken unilateral action against Iran and that the US is not involved in the attacks. The White House has called an emergency meeting of the National Security Council. Just hours before the Israeli attack, Donald Trump wrote on social media of hopes for a diplomatic resolution of tensions with Iran.

The sharpest reaction to the Israeli attack on Iran was first seen on the oil market. US oil futures rose by as much as 13%. Analysts say Friday, June 13, could see the biggest one-day jump in the price of this commodity in at least 5 years.

Just before 8 a.m., a barrel of West Texas Intermediate crude oil was trading at $73.29 in New York, up 7.72%. Brent crude oil on ICE was trading at $74.59 a barrel, up 7.54 percent.

A wave of fear and risk aversion also boosted the stock market gold. On Friday morning, the price of the royal metal rose by 1.3%, reaching level of 3,445.72 USD per troy ounce. Earlier in the morning, the yellow metal was valued at as much as USD 3,466/oz. – close to the April record all-time (3,509 USD/oz.).

Silver gained much less, dollar prices at 8:00 AM were $36.39/oz. Only slightly down industrial metals prices: copper (-0.7%), platinum (-1.1%), zinc (-0.5%) or palladium (-1.1%). This would suggest that the market is not afraid for now recessionary effects of Israeli aggression. It is worth noting, however, that the exchange rate Gasoline futures rose by 5.1% and diesel oil futures by 5.4%.

Cryptocurrency prices also reacted to the Iranian attack on Israel. Over the past 24 hours, the total capitalization of this market decreased by 6.2%. By 8:00 AM, the bitcoin price fell by 3.4%, retreating to the level of $104,200, and ethereum lost as much as 9%. Even greater losses among the top altcoins were recorded by solana (-9.6%) and dogecoin (-9.3%). XRP withdrew by 6.2%, and BNB by 2.7%.

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