Wall Street futures tumbled sharply in premarket trading Friday as Israeli strikes on Iranian nuclear facilities sent global markets into turmoil and sparked a rush to safe-haven assets.
The Dow Jones Industrial Average futures fell 378 points, or 0.9%, while S&P 500 e-minis dropped 0.8% and Nasdaq 100 e-minis plunged 1.1% as investors fled risk assets following the military escalation
Israeli airstrikes on Iranian nuclear facilities immediately triggered a sharp reaction in global markets, sending oil, bonds, and gold rallying. Crude prices surged nearly 9% on fears the conflict could disrupt supplies from the oil-rich Middle East region.
The energy sector saw immediate bifurcation. Major oil companies posted strong premarket gains, with Chevron rising 2.7% and ExxonMobil advancing 3.3%. Conversely, airlines faced steep declines on rising fuel cost concerns—Delta Air Lines dropped 5.2%, United Airlines fell 5.3%, Southwest declined 3.4%, and American Airlines lost 4.8%.
Defense contractors capitalized on escalating tensions, with Lockheed Martin up 3.1%, RTX Corporation gaining 3.9%, Northrop Grumman rising 3.8%, and L3Harris Technologies advancing 2.8%
Israel has characterized the strikes as the beginning of a prolonged operation to prevent Iran from developing nuclear weapons, with Iran promising harsh retaliation. President Trump distanced Washington from the operation while suggesting Iran “brought the attack on itself” and warning of “even more brutal” future attacks if Iran doesn’t negotiate.
Nuclear talks between both countries remain scheduled for Sunday in Oman, representing the sixth round of diplomatic discussions.
“We have major domestic policy uncertainty, and now on top of that, you have geopolitical unrest,” said Eric Teal, chief investment officer at Comerica Wealth Management, highlighting the dual pressures facing markets.
Despite Friday’s decline, the S&P 500 remains just 1.6% below its record high following strong May gains driven by solid corporate earnings. The Nasdaq sits 2.5% off its December peak.
Gold miners benefited from the flight to safety, with Newmont gaining 1.2%, Harmony Gold up 0.7%, and AngloGold Ashanti rising 1.6% as bullion reached near two-month highs.
The Federal Reserve is expected to hold rates steady at next week’s meeting, while investors await the University of Michigan’s preliminary June consumer sentiment reading at 10 a.m. ET.
WHAT YOU SHOULD KNOW
Israeli strikes on Iranian nuclear facilities have sent shockwaves through global markets, with U.S. futures down nearly 1% and oil prices surging 9%.
Investors are pricing in serious supply disruption risks from the Middle East conflict, creating a classic flight-to-safety scenario where energy and defense stocks rally while airlines and broader markets sell off.
With Iran promising retaliation and Israel warning of prolonged operations, markets face sustained volatility until tensions de-escalate. The immediate investment impact is clear—energy costs are rising, geopolitical risk premiums are expanding, and safe-haven assets are in demand.
