Israel attacks Iran, stock futures tumble, oil prices surge

Updated 8:35 EST on Friday June 13 to include additional comments from President Donald Trump, updated stock futures, and increased detail into the attack.

The stock market has rallied over 20% since April 9, when President Trump paused most reciprocal tariffs announced on April 2, so-called "Liberation Day."

The rally has lifted stocks despite significant uncertainty over the US economy, including risks of sticky inflation and slowing economic activity.

Now the S&P 500 faces another geopolitical challenge.

On June 12, Israel launched a missile attack on Iran targeting nuclear facilities, including military locations within Tehran. The attack also targeted key leaders of Iran.

Among those killed in the attack are General Hossein Salami, the Revolutionary Guard's commander and Major General Mohammad Bagheri, the highest ranking military officer in Iran, according to CNN.

Israel's Prime Minister Benjamin Netanyahu, who labeled the attack “Operation Rising Lion,” said the attack will continue for days.

Iran launched a drone attack involving hundreds of drones in response. Additional Iranian attacks on Israel are possible.

The attack follows comments from President Donald Trump on Wednesday, warning, "There’s a chance of massive conflict" in the Middle East amid negotiations regarding Iran's nuclear program.

On Friday, President Trump reaffirmed support for Israel and called on Iran to continue negotiating an end to their nuclear program.

"Two months ago I gave Iran a 60 day ultimatum to “make a deal.” They should have done it! Today is day 61. I told them what to do, but they just couldn’t get there. Now they have, perhaps, a second chance!," wrote Trump on Truth Social. 

The Trump Administration has denied involvement in the attack.

"Tonight, Israel took unilateral action against Iran. We are not involved in strikes against Iran and our top priority is protecting American forces in the region," said U.S. Secretary of State Marco Rubio in a statement.

Iran’s Supreme Leader Ayatollah Ali Khamenei said the country's response to Israel will deliver “severe punishment.”

Crude oil prices are surging on concerns that tensions will spill over, potentially impacting Middle East crude oil shipments. 

In 2023, 20.9 million barrels per day were transported through the Straight of Hormuz between Oman and Iran, equivalent to roughly 20% of global petroleum liquids consumption.

Brent and U.S. West Texas Crude oil prices rose roughly 8% to $74.77 and $73.42 a barrel, respectively. WTI crude is trading at its highest levels since early February, trading up 18% over the past month.

Stock market futures are falling due to the increased uncertainty. S&P 500 and Nasdaq futures are down 1% and 1.2%, respectively, at 8:47 am EST.

Defense stocks are higher. RTX is up 3.4% and Lockheed Martin is up 2.9% in premarket trading.

This is a developing story.

Related: Veteran fund manager who predicted April rally updates S&P 500 forecast