European stock markets closed lower Friday as tensions escalated following attacks by the United States and Israel on Iranian soil, coinciding with calls from former U.S. President Donald Trump for Iran’s “unconditional surrender.” Madrid’s IBEX 35 index fell 1.15%, while London’s FTSE 100 and Milan’s FTSE MIB both declined by 1.1%. Frankfurt’s DAX and the Paris CAC 40 shed 0.9% and 0.8% respectively. Wall Street also experienced losses, with the Dow Jones Industrial Average down 1% and the Nasdaq Composite falling 0.7%.
The price of crude oil surged, with West Texas Intermediate (WTI) climbing 9.9% to $89.04 a barrel, fueled by concerns over potential disruptions to supply. These concerns stem from discussions of a production cut by the Organization of the Petroleum Exporting Countries (OPEC) and the possibility of the Strait of Hormuz being closed. Natural gas prices also rose, increasing 4.97% to €53.2 per megawatt-hour.
Precious metals experienced a downturn, with gold falling 1.44% to $2,090.38 per ounce and silver declining 1.53% to $82.99 per ounce. The dollar remained relatively stable, trading at 86.23 cents and 74.69 pence. The spread between Italian and German 10-year government bonds narrowed to 76.3 basis points, while the Italian annual yield rose 6.8 basis points to 3.63%. The German yield increased by 2.5 basis points to 2.86%, and the French yield rose 6 basis points to 3.52%.
The attacks on Iran come amid a wider conflict, with the U.S. Reportedly anticipating further attacks lasting weeks and intensifying, according to the Associated Press. The Council on Foreign Relations has been tracking the escalating tensions between Iran, Israel, and the United States.
News emerged Friday of the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, as reported by NPR. This development adds a significant layer of complexity to the already volatile situation.
Mondoweiss published an analysis characterizing the actions of the U.S. And Israel as an “illegal war on Iran.”
