On June 13, 2025, Israel’s Operation Rising Lion — a large-scale military strike on Iranian military and nuclear facilities — triggered immediate shockwaves in global financial markets. The escalation, which saw Iran retaliate with drone attacks, raised fears of prolonged conflict in the Middle East.
🌍 Key Market and Economic Damages
Global stock markets tumbled:
U.S. Dow futures fell over 400 points (-1.5%), S&P 500 dropped 1.2%, and Nasdaq sank nearly 1.5% during overnight trading.
European markets also declined, with the Stoxx 600 index hitting a 3-week low, led by a sharp fall in travel, airline, and leisure stocks.
Oil prices spiked:
Brent crude surged by 7%–9%, briefly crossing $75 per barrel, as traders feared supply disruptions in the energy-rich region.
Safe-haven assets soared:
Investors rushed to gold and the U.S. dollar, driving prices up as they sought protection against market uncertainty.
Middle East currency impact:
The Israeli shekel weakened by around 1.5%, while regional bonds faced selling pressure.
Emerging markets hit:
In India, Adani Ports and other companies with ties to Israel saw their stocks fall. Oil marketing companies (OMCs) came under stress due to the rising cost of crude oil.
⚠️ Ripple Effects on Key Sectors
Airlines and travel firms are facing losses due to airspace restrictions and rising fuel costs.
Manufacturing and logistics firms dependent on Middle East trade routes may see cost spikes and supply chain delays.
Global economic growth fears have resurfaced, with some analysts warning of a possible stagflationary shock if tensions persist.
💡 Conclusion
The Iran-Israel conflict has already hurt multiple industries and rattled investor confidence. If fighting escalates, further damage to trade, energy security, and financial stability could follow
— affecting economies worldwide.