Israel's raid on Iran causes market to explode: oil prices soar 13% at opening, gold jumps 2%, Dow futures plummet 500 points in response.

With the United States launching attacks on Iran over the weekend and oil prices soaring, geopolitical risks have become another major concern for investors. Data shows that international oil prices jumped at the opening on Monday, with Brent crude soaring by about 13% to over $82 per barrel, and WTI crude rising by about 12% to $75 per barrel. The joint airstrike by the US and Israel resulted in the death of Iran's top leader, Ayatollah Khamenei, becoming one of the most pivotal events for the Islamic Republic of Iran since 1979. Despite President Trump stating in an interview that the military actions against Iran were "ahead of schedule", the market remains concerned about the prolongation of the conflict. This large-scale military operation was launched late Saturday night, after Iran had rejected US demands to stop its nuclear program. Iranian officials have vowed strong retaliation, intensifying concerns about the spread of conflict throughout the Middle East. As the fourth-largest oil-producing country in OPEC, the situation in Iran has caused dramatic fluctuations in the oil market. With a leadership vacuum, it is uncertain who will ultimately take control. The direction of the oil market depends on whether the conflict will affect the Strait of Hormuz - a critically important route for global oil transportation. If the strait remains blocked, it could impact the global energy market and reignite inflationary pressures. Analysts led by Henri Patricot at UBS pointed out in a report to clients on Sunday, "We believe that the speed of the resumption of traffic in the Strait of Hormuz in the coming days, and the intensity of Iran's retaliation, are key factors determining oil prices." According to consulting firm Rystad Energy, oil tanker traffic through the Strait of Hormuz has practically come to a standstill as shipping companies take precautionary measures. Energy consultancy Kpler's oil analyst Matt Smith said, "Tankers are beginning to stack up near the Strait of Hormuz, but it appears almost no vessels are passing through - tankers clearly appear spooked." According to Kpler's data, around 14 million barrels of oil pass through the strait each day, accounting for about a third of global seaborne crude oil exports. The company stated that about three-quarters of these exports go to China, India, Japan, and South Korea. UBS analysts stated that the market may be facing a major supply disruption, which could push Brent spot prices above $120 per barrel. Safe-haven sentiment boosts gold, while US stock futures plunge in response Rising safe-haven sentiment pushed gold prices up by 2%, while Dow Jones Industrial Average futures plummeted by 543 points in overnight trading; S&P 500 and Nasdaq 100 futures both fell by about 1%. "Under the shadow of uncertainty, global risk assets will be under pressure," said Adam Hetts, Global Head of Diversified Assets at Janus Henderson. "If turmoil persists, rising oil prices could trigger global inflation panic." The geopolitical crisis comes at a fragile time for US stocks. Last Friday, the S&P 500 fell amidst tech sector volatility, with AI and software sectors facing selling pressure. The market began to question whether the rapid spread of AI would disrupt traditional software companies, and whether the wave of automation would erode profit models and trigger layoffs. In a report to clients, Citigroup's stock strategy team stated, "Short-term impact is a probable event, but long-term frictions in the stock market cannot be ruled out. This round of volatility must be added to the growing list of concerns - the AI investment frenzy seems to be flourishing, but its promises of productivity are quickly encountering the reality of business model disruption." Barclays analyst Ajay Rajadhyaksha said, "While the conflict will not be severe enough to completely change the outlook for the US economy, the tail risks of continued confrontation far exceed the levels of 2024 or 2025." He warned investors not to rush to buy this week, "after all, the market has become accustomed to conflict patterns that cool down quickly."