What started as whispers of rising tension has now exploded into full-scale alarm in global markets.

A sudden Israeli strike on Iranian nuclear and military facilities has triggered a surge in oil prices and sent stock markets into a tailspin.

As fears grow over the possibility of a much broader war, investors are scrambling to protect their assets.

Markets React to Middle East Shockwave

Oil prices jumped more than 12% on Friday, the kind of spike not seen since January, after news broke of what Israel called a “preemptive” strike on Iran.

Both Brent crude and US oil contracts soared, reacting to fears of disrupted global supply if the region spirals into conflict.

At the same time, stock markets across Asia plunged, while investors rushed into safe havens like gold and bonds.

Gold prices briefly surged above $3,400 an ounce, as panic about regional instability took hold.

Stephen Innes from SPI Asset Management summed up the situation bluntly: “The Middle East powder keg just blew the lid off global markets.”

Netanyahu Confirms Attack and Vows to Keep Going

In a televised message, Israeli Prime Minister Benjamin Netanyahu confirmed that the strikes had specifically targeted Iran’s main nuclear enrichment site at Natanz and critical locations in its ballistic missile program.

He added that the operation would continue until “the threat is removed”, even stating that Iranian scientists working on nuclear weapons were among the targets.

Iran Vows Painful Retaliation

Iran’s Supreme Leader Ayatollah Ali Khamenei didn’t hold back.

In a strong warning, he called the attack a “crime” and promised Israel would face a “bitter and painful fate”.

According to Tehran, the strikes also hit residential buildings, which could heighten the anger and resolve to strike back.

Escalation Feared as the U.S. Watches Closely

Although the United States denied any direct role in the Israeli operation, President Donald Trump acknowledged that a “massive conflict” could erupt in the region.

He said an Israeli strike was always a possibility and could derail diplomatic progress on Iran’s nuclear deal, which he claimed was “fairly close.”

At the same time, Iran has threatened to target U.S. military bases in the region if wider fighting breaks out, raising serious questions about how long Washington can stay out of the fray.

Strait of Hormuz Now a Critical Flashpoint

Analysts warn that the crisis could grow even more severe if fighting spreads to the Strait of Hormuz—a key chokepoint for nearly 20% of the world’s oil trade.

If Iran moves to block the strait or attack ships, oil prices could spike by another $15 per barrel, potentially pushing Brent crude over $90.

Banking heavyweight JPMorgan Chase had already issued a warning earlier this week that if the worst-case scenario unfolds, oil could skyrocket to $130 per barrel.

Stocks Fall, Bonds Rise as Traders Seek Shelter

It wasn’t just oil and gold reacting. US and European equity futures tanked, while bond yields dipped as demand for safer investments surged.

Investors, bracing for a prolonged geopolitical standoff, are pulling out of risky assets and bracing for a volatile second half of 2025.

Trump Reignites Trade War Fears

As if the geopolitical crisis wasn’t enough, Donald Trump added more uncertainty to the mix by reviving trade war rhetoric.

He announced plans to send letters to foreign governments warning of unilateral tariffs on exports to the U.S., sparking fears of renewed trade conflicts that could hit global growth even harder.

His previous threats had already caused market dips in early April before he paused the tariffs for 90 days. Now, investors fear the pain may return.

Where Oil, Currency, and Commodities Stand Now

As of 08:30 South African time:

Brent Crude stood at $74.43 per barrel
The Rand/Dollar exchange rate was R17.97/$

These figures may quickly change depending on how the next few days unfold in the Middle East.

Is This the Beginning of a Wider War?

With both sides making threats and no sign of de-escalation, the fear on many minds is whether this could become the trigger for a larger regional—or even global—conflict.