U.S. Stocks Fall Sharply Amid Iran-Israel Escalating Conflict

(MENAFN) Major US stock indices ended the week sharply lower Friday amid escalating conflict between Iran and Israel, shaking investor confidence worldwide.

Israel launched a large-scale military operation early Friday, targeting Iran’s nuclear and military infrastructure and reportedly killing several top Iranian military leaders and scientists. The strikes hit multiple key locations including Tehran, Natanz, Tabriz, and Isfahan, continuing into the evening.

In response, Iran unleashed a retaliatory offensive dubbed Operation True Promise III late Friday night, further intensifying regional tensions.

This sudden escalation in the Middle East rattled global markets, pushing investors toward safer assets and triggering broad selloffs on Wall Street.

A US official confirmed to a news outlet that America was actively aiding Israel by intercepting missiles aimed at Israeli territory.

Brent crude oil prices initially surged 7.2%, climbing to $74.38 per barrel by midday before settling near $72.50. However, prices rebounded roughly 1% after Iran’s counterstrike.

Market benchmarks closed significantly lower: the Dow Jones Industrial Average dropped 1.79% (769.83 points) to 42,197.79, the Nasdaq Composite fell 1.3% (255.66 points) to 19,406.83, and the S&P 500 declined 1.13% (68.29 points) to 5,976.97.

Meanwhile, the CBOE Volatility Index (VIX), often called Wall Street’s “fear index," surged 15.54% to 20.82, reflecting investor anxiety amid the unfolding crisis.

The abrupt deterioration of Middle East stability has triggered urgent concerns over further market volatility and geopolitical fallout in the coming days.

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