The markets were watching as global stocks fell on Friday amid rising tension between Israel and Iran. AP
The markets were watching as global stocks fell on Friday amid rising tension between Israel and Iran. AP
The markets were watching as global stocks fell on Friday amid rising tension between Israel and Iran. AP
The markets were watching as global stocks fell on Friday amid rising tension between Israel and Iran. AP

Global stocks dive as Iran retaliates against Israel air strikes


Fareed Rahman
  • English
  • Arabic

Stock markets around the world plunged on Friday, while oil and gold prices rose, as Tehran conducted retaliatory attacks after Israel launched air strikes on Iran.

The Dow Jones Industrial Averaged tumbled 769.83 points, or 1.79 per cent. The S&P 500 and tech-heavy Nasdaq Composite fell 1.13 and 1.30 per cent, respectively, when markets closed on Friday.

Gold prices rose 1.37 per cent to about $3,432.34 an ounce as investors rushed to safe-haven assets after the escalation of hostilities in the Middle East.

Japan's Nikkei 225 lost 0.89 per cent, South Korea's Kospi dropped 0.87 per cent and Hong Kong's Hang Seng index shed 0.59 per cent when markets closed on Friday.

In other markets in Asia, China’s Shanghai Composite and Shanghai A share index were both down 0.75 per cent. The Shenzhen A share index and Shenzhen component index were also trading lower. Taiwan's Taiex index was down 0.96 per cent.

In India, the BSE 100 fell 0.65 per cent, while Australia’s S&P/ASX 200 index declined by 0.2 per cent.

European stock markets also traded lower as tension in the Middle East increased.

In London, the FTSE 100 was down 0.39 per cent, while Paris’s CAC 40 fell 1.04 per cent and Frankfurt's DAX shed 1.07 cent. In the Middle East, Dubai’s DFM general index closed 1.85 per cent lower, while Abu Dhabi’s FTSE ADX general index was down 1.47 per cent.

Iran launched retaliatory strikes on Israel on Friday, shooting a barrage of missiles at Tel Aviv after Iran's supreme leader Ayatollah Ali Khamenei pledged to strike back against the country.

Global stock markets were already under pressure as a result of tariffs announced by the US President Donald Trump.

The tension in the Middle East was expected to add uncertainty to the atmosphere in markets.

“Rising geopolitical tensions are powering haven assets,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. She added that oil and defence stocks were likely to benefit.

A building that was hit by Israeli air strikes in the north of Tehran on Friday. EPA
A building that was hit by Israeli air strikes in the north of Tehran on Friday. EPA

Market volatility is likely to “remain elevated,” amid the rise in tensions in the Middle East, Vijay Valecha, chief investment officer at Century Financial told The National.

“The sell-off was broad-based, reflecting investor unease over potential escalation and retaliation by Iran, which has promised a forceful and proportional response,” he said.

Rate cut optimism by the Fed following the recent soft inflation data in the US is also supporting gold prices, he added.

Nigel Green, chief executive of deVere Group, also expects market volatility to persist in the short term.

However, “time and again, we’ve seen markets overreact to geopolitical events – only to recover once the initial panic fades. This is not a systemic crisis, and fundamentals across most sectors remain intact”, he said.

Meanwhile, the US dollar strengthened against major currencies after the attacks. The Israeli shekel was also trading lower against it.

“The US dollar has been the clear winner, recovering around half of its week-to-date losses, with the yen and the Swiss franc also outperforming,” said Matthew Ryan, head of market strategy at global financial services firm Ebury.

Kyle Fitzgerald contributed to this report from Washington

TRAP

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Director: M Night Shyamalan

Rating: 3/5

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

UAE currency: the story behind the money in your pockets
Results

2.30pm: Park Avenue – Conditions (PA) Dh80,000 (Dirt) 2,000m; Winner: Rb Seqondtonone, Abdul Aziz Al Balushi (jockey), Helal Al Alawi (trainer)

3.05pm: Al Furjan – Maiden (TB) Dh82,500 (Turf) 1,200m; Winner: Bosphorus, Dane O’Neill, Bhupat Seemar

3.40pm: Mina – Rated Condition (TB) Dh105,000 (D) 1,600m; Winner: Royal Mews, Tadhg O’Shea, Bhupat Seemar

4.15pm: Aliyah – Handicap (TB) Dh87,500 (T) 1,900m; Winner: Ursa Minor, Ray Dawson, Ahmad bin Harmash

4.50pm: Riviera Beach – Rated Conditions (TB) Dh95,000 (D) 2,200m; Winner: Woodditton, Saif Al Balushi, Ahmad bin Harmash

5.25pm: Riviera – Handicap (TB) Dh2,000 (T) 2,000m; Winner: Al Madhar, Antonio Fresu, Musabah Al Muhairi

6pm: Creek Views – Handicap (TB) Dh95,000 (T) 1,400m; Winner: Al Salt, Dane O’Neill, Erwan Charpy

While you're here
The 12 Syrian entities delisted by UK 

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

Super Saturday race card

4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

Specs

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Updated: June 14, 2025, 5:26 AM`