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Saturday, June 14, 2025

Global stocks dive as Iran retaliates against Israel air strikes

By Vijay Valecha in 'Century in News'

Global stocks dive as Iran retaliates against...

Vijay Valecha, June 14, 2025, The National

Stock markets around the world plunged on Friday, while oil and gold prices rose, as Tehran conducted retaliatory attacks after Israel launched air strikes on Iran.

The Dow Jones Industrial Averaged tumbled 769.83 points, or 1.79 per cent. The S&P 500 and tech-heavy Nasdaq Composite fell 1.13 and 1.30 per cent, respectively, when markets closed on Friday.

Gold prices rose 1.37 per cent to about $3,432.34 an ounce as investors rushed to safe-haven assets after the escalation of hostilities in the Middle East.

Japan's Nikkei 225 lost 0.89 per cent, South Korea's Kospi dropped 0.87 per cent and Hong Kong's Hang Seng index shed 0.59 per cent when markets closed on Friday.

In other markets in Asia, China’s Shanghai Composite and Shanghai A share index were both down 0.75 per cent. The Shenzhen A share index and Shenzhen component index were also trading lower. Taiwan's Taiex index was down 0.96 per cent.

In India, the BSE 100 fell 0.65 per cent, while Australia’s S&P/ASX 200 index declined by 0.2 per cent.

European stock markets also traded lower as tension in the Middle East increased.

In London, the FTSE 100 was down 0.39 per cent, while Paris’s CAC 40 fell 1.04 per cent and Frankfurt's DAX shed 1.07 cent. In the Middle East, Dubai’s DFM general index closed 1.85 per cent lower, while Abu Dhabi’s FTSE ADX general index was down 1.47 per cent.

Iran launched retaliatory strikes on Israel on Friday, shooting a barrage of missiles at Tel Aviv after Iran's supreme leader Ayatollah Ali Khamenei pledged to strike back against the country.

Global stock markets were already under pressure as a result of tariffs announced by the US President Donald Trump.

The tension in the Middle East was expected to add uncertainty to the atmosphere in markets.

“Rising geopolitical tensions are powering haven assets,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. She added that oil and defence stocks were likely to benefit.

Market volatility is likely to “remain elevated,” amid the rise in tensions in the Middle East, Vijay Valecha, chief investment officer at Century Financial told The National.
“The sell-off was broad-based, reflecting investor unease over potential escalation and retaliation by Iran, which has promised a forceful and proportional response,” he said.
Rate cut optimism by the Fed following the recent soft inflation data in the US is also supporting gold prices, he added.

Source:

The National

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