Israeli strike on Iran triggers market tumult, oil price spike

The Israeli military launched an attack on Iran early Friday, according to the "New York Times" which cited two Israeli military officials. Sources in Iran told the newspaper that a military base near Isfahan was hit. Markets responded nervously as initial reports of the explosions surfaced.

Early morning reports from Iran spoke of explosions. Israeli media covered the attacks on targets within Iran. In the meantime, Iran's Fars news agency reported hearing an explosion at the airport in the Iranian city of Isfahan.

In the province of Isfahan, there are several Iranian nuclear facilities, including Natanz, which plays a key role in the Iranian uranium enrichment program. "New York Times" sources in Iran confirmed that a military base near Isfahan was struck.

In reaction, air defenses were activated. Hossein Dalirian, a spokesman for the Iranian civil space program, reported on social media that several small drones of the "quadcopter" type were shot down.

Iranian media connected to the Revolutionary Guard reported that the nuclear facilities were secure.

Market reactions to these events were tense. Brent crude oil prices surged to over 90 dollars a barrel overnight. By morning, although the spike had somewhat settled, with prices returning to around 88.9 dollars, it began rising again, according to Bloomberg.

On Friday, Brent crude oil prices increased by 1.87 percent, and WTI crude went up by 2.14 percent, reaching 84.5 dollars a barrel.

The price of gold also saw an uptick. It traded above 2400 dollars an ounce, while wheat prices jumped by 4 percent.

Bloomberg further noted that U.S. Treasury bonds appreciated in value, cementing their status as a safe haven during uncertain times. However, futures on U.S. stocks dropped alongside Asian markets.

So-called safe-haven currencies, including the yen, Swiss franc, and dollar, appreciated on Friday due to the situation in the Middle East.