israel strikes iran amid nuclear concerns, markets rattled

2025-06-13 general

Tel Aviv, Friday, 13 June 2025.
an israeli attack on iran has triggered a ‘special situation’ declaration and sent ripples through global markets. tensions were already high due to iran’s nuclear program, with the un watchdog agency reporting non-compliance and the announcement of a new enrichment site. brent crude futures surged more than 5% after the attack. this geopolitical instability injects uncertainty into the semiconductor sector, potentially affecting nvidia, asml, and tsmc. investors should brace for increased market volatility as the situation unfolds.

Market reaction

The initial market response to the attack was significant [2]. Dow Jones Industrial Average futures fell by 1.1%, a loss of 492 points [2]. S&P 500 futures experienced a similar decline, dropping approximately 1.3% [2]. The tech-heavy Nasdaq 100 futures also suffered, falling by 1.4% [2]. These movements reflect investor anxiety and a flight to safety amid geopolitical uncertainty [GPT]. Energy stocks, however, saw gains, with Brent crude futures rising by more than 5% [2].

Rising tensions

Iran’s recent actions have heightened international concerns [1]. The country announced the construction of a third nuclear enrichment facility [1]. This announcement followed a censure from the International Atomic Energy Agency (IAEA) for non-compliance with nuclear obligations [1]. This censure was the first of its kind in 20 years [1]. These developments exacerbate existing tensions and increase the risk of further conflict [GPT]. A sixth round of Iran-U.S. talks is scheduled to begin Sunday in Oman [1] [alert! ‘date is in the future, need to check status’].

Trump’s perspective

President Trump has weighed in on the situation, stating that an Israeli attack on Iran is ‘very likely’ [5]. However, he added that he would not describe it as ‘imminent’ [5]. Trump has expressed a preference for a peaceful resolution to the conflict, favoring a negotiated settlement regarding Iran’s nuclear program [5]. He also mentioned that the U.S. is withdrawing personnel from some Middle Eastern regions due to potential dangers [4]. This withdrawal adds to the perception of heightened risk and instability in the region [GPT].

Potential for escalation

The current environment carries a significant risk of escalation [5]. The U.S. is on high alert, with embassies and military bases in the Middle East under increased security [3]. There are reports that the U.S. anticipates a potential Iranian response, possibly targeting U.S. military bases in Iraq [3][4]. Iran has warned that it would strike U.S. assets in the region if it is attacked over its nuclear program [4]. This tit-for-tat dynamic creates a precarious situation for investors [GPT].

Sector impacts

The energy sector is particularly sensitive to these geopolitical events [2]. The S&P 500 energy sector had already advanced 3.9% before the attack [2]. ConocoPhillips, APA Corp, and Halliburton were among the top performers, with gains of 8.6%, 7.8%, and 7.1% respectively [2]. Conversely, the industrials sector was underperforming, with United Airlines and GE Aerospace declining by more than 8% and 6.1% respectively [2]. These shifts highlight the immediate impact of the crisis on different sectors [GPT].

Bronnen

geopolitical risk semiconductor market