Israel Launches Strike on Iran; U.S. Markets, Gold, and Oil React Sharply

On June 12 local time, Israel carried out an attack on Iran, escalating tensions in the Middle East. According to CCTV News, a series of explosions were heard in Tehran, though Iranian authorities have not yet confirmed the cause. Israel has acknowledged responsibility for the strike, stating that its air force is targeting multiple facilities within Iran linked to its nuclear program and other military infrastructure. The operation has been designated "Lion's Strength." Israeli military sources claimed Iran possesses sufficient enriched uranium to manufacture several bombs within days, calling for immediate countermeasures.

Previously, former U.S. President Donald Trump warned that a failure to reach a nuclear agreement with Iran could lead to an Israeli strike, potentially triggering a broader conflict. Earlier this week, the U.S. Embassy in the Middle East began evacuating non-essential personnel. Following the news, major U.S. stock index futures declined. As of publication, Dow Jones futures were down 1.19%, S&P 500 futures dropped 1.35%, and Nasdaq futures fell 1.55%. U.S. Treasury prices climbed, with the 10-year yield decreasing by 2 basis points to 4.34%.

Spot gold surged to $3,400 per ounce, reflecting heightened investor risk aversion. Meanwhile, U.S. WTI crude oil futures rose over 6%, approaching $72 per barrel. The shipping industry had previously cautioned that an outbreak of conflict between Israel and Iran could lead to a temporary closure of the Strait of Hormuz, a key channel for transporting energy, grain, and other essential commodities.

According to media reports, Israeli Defense Minister Israel Katz has declared a state of special emergency. The Israel Defense Forces announced on platform X that national activity, including work and education, would be suspended unless deemed essential, as part of updated defense protocols from the Home Front Command.