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Oil futures shot higher and U.S. stock-market futures sank Thursday evening on reports that Israel was attacking sites in Iran.
Explosions were reportedly heard in Tehran, and Israel’s Defense Minister Israel Katz described the airstrikes as a “special situation,” according to the Associated Press. There were few other immediate details.
U.S. benchmark West Texas Intermediate crude for July delivery CL.1 +6.19% and the global benchmark Brent crude for August delivery BRNQ25 +5.68% soared more than 3%.
The news sent U.S. stock-market futures falling, with the Dow Jones Industrial Average futures down more than 300 points, or 0.8%, while S&P 500 futures and Nasdaq-100 futures fell about 1%.
Explosions rocked Tehran early Friday morning, and Israel’s defense minister said his country’s warplanes had carried out an attack on Iran, raising fears of a war between two of the most powerful militaries in the Middle East.
Neither the scale of the attack nor the damage it caused was immediately clear. The strike was expected to prompt swift retaliation from Iran, likely involving a large barrage of ballistic missiles comparable to that Iran fired during similar escalations last year.
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