(NEW YORK) — Oil prices surged and stocks slumped on Friday morning in the immediate hours after Israel began an attack on Iran targeting nuclear sites and senior military officers.
The strike stoked concern among investors about a possible wider conflict across the Middle East, which accounts for a large share of global oil production.
The U.S. West Texas Intermediate futures price — a key measure of U.S. oil prices — surged more than 7% on Friday. Brent crude future prices, another top measure of oil prices, also climbed more than 7%.
Stocks, meanwhile, tumbled in early trading on Friday as the ultimate outcome of the Israel-Iran conflict remained unclear.
The Dow Jones Industrial Average fell 575 points, or 1.3%, at the close of trading. The S&P 500 declined 0.8%, while the tech-heavy index slid 0.9%.
The jump in oil prices threatens to raise the price of gasoline for U.S. drivers, since crude oil makes up the top ingredient in car fuel.
Gas prices “will likely start to rise across much of the country later this evening in response to Israel’s attacks on Iran, which have caused oil prices to surge,” Patrick de Haan, the head of petroleum analysis at GasBuddy, said on Friday in a post on X.
A typical gallon of gas could tick up between 10 and 25 cents, de Haan added. The average price of a gallon of gas currently stands at $3.13, AAA data shows. The price increase anticipated by de Haan would amount to a hike of as much as nearly 8%.
“For now, I expect the rise to be noticeable, but limited,” de Haan said. “This could change.”
Israel launched dozens of strikes against Iran early Friday morning local time, striking at the heart of the country’s nuclear program, killing several nuclear scientists as well as high-ranking military leaders, according to Israeli officials.
Iran responded with an aerial attack involving about 100 drones, Israel said, but all of them were shot down before hitting their target.
The move downward for U.S. stocks followed losses in markets across Asia and Europe. The STOXX Europe 600 index fell about 1% by late afternoon local time. In Japan, the Nikkei 225 in Tokyo dropped 0.8% on Friday.
ABC News’ Riley Hoffman, Leah Sarnoff, Jack Moore, Jon Haworth, and Nadine El-Bawab contributed to this report.
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