U.S. Stocks Slide After Israeli Strike on Iran Rattles Markets

​U.S. stock futures tumbled Friday as an Israeli military strike on Iran’s nuclear facilities escalated tensions in the Middle East and sent a wave of risk aversion through global markets.

The attack targeted Iran’s nuclear sites in an effort to prevent Tehran from developing an atomic weapon. In response, Iran launched 100 drones in retaliation, heightening fears of a wider regional conflict.

Oil prices surged more than 6%, fueling a rally in energy stocks. Chevron and ExxonMobil both rose nearly 3% in premarket trading. Defense stocks also climbed, with Lockheed Martin up 4.7%, RTX up 5.5%, Northrop Grumman gaining 4.2%, and L3Harris Technologies adding 4.3%.

But the broader market was under pressure. At 04:32 a.m. ET:
-Dow futures fell 505 points (down 1.17%),
-S&P 500 futures slid 70.5 points (down 1.17%),
-Nasdaq 100 futures dropped 309.25 points (down 1.41%),
-Russell futures slumped 1.6%, signaling weakness in domestically focused stocks.

Airline shares were among the hardest hit as higher oil prices stoked concerns about rising fuel costs. Delta Air Lines fell 3.9%, United Airlines lost 4.8%, Southwest Airlines declined 2.5%, and American Airlines dropped 3.9%.

The market selloff comes just days ahead of a planned sixth round of U.S.–Iran nuclear talks, now clouded by the escalation. U.S. Secretary of State Marco Rubio described the Israeli offensive as a "unilateral action," emphasizing that Washington was not involved.

Despite Friday’s losses, the S&P 500 remains just 1.8% below its all-time high after a strong May rally. The Nasdaq is 2.8% off its record close from December.

Looking ahead, traders are eyeing next week’s Federal Reserve meeting, where policymakers are expected to hold interest rates steady.

Bottom line: The Israeli strike on Iran has jolted markets, sending oil prices soaring and stocks sliding as geopolitical risks mount. With nuclear talks in doubt and tensions high, traders are bracing for more volatility in the days ahead.
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