Global markets reacted sharply on Friday after Israel launched major military strikes on Iran, targeting nuclear and military infrastructure. The escalation raised fears of a broader conflict in the oil-rich Middle East, fueling a rush into safe-haven assets.

Oil prices spiked as much as 14% before settling around $74 per barrel, marking the biggest daily gain since 2022. Gold neared its all-time high at $3,416 per ounce. In contrast, equities tumbled, U.S. futures dropped over 1.5%, and European and Asian markets saw declines over 1%.

Investors sought refuge in U.S. Treasuries, the dollar, and the Swiss franc, pushing bond yields down to multi-month lows. The Israeli shekel fell nearly 2%, while sovereign bonds of Israel, Egypt, and Pakistan also declined.

Analysts warned the conflict could derail market stability and complicate central banks’ decisions, especially if oil prices stay elevated. Uncertainty is expected to persist as traders monitor whether tensions escalate further and how global powers respond.