<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Oil surged, stocks fell and investors sought safety in the US dollar and government bonds on Friday after </span><a href="https://www.9news.com.au/world/explosions-ring-out-across-irans-capital-as-israel-claims-it-is-attacking-the-country/49e40c56-6e92-46ca-8d1c-b4edef51d5a2" rel="" target="" title="Israel struck Iranian nuclear and military targets"><span>Israel struck Iranian nuclear and military targets</span></a><span> in an attack that raised the risk of war between the two countries and broader instability in the Middle East.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Futures for the S&amp;P 500 fell 0.9 per cent before the opening bell, while futures for the Dow Jones Industrial Average were down one per cent. Nasdaq futures slid 1.1 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US benchmark crude oil rose by $4.73 ($7.30), or 6.9 per cent, to $72.77 ($112.27) per barrel, its biggest gain since the early days of </span><a href="https://www.9news.com.au/russia-ukraine" rel="" target="" title="Russia's attack on Ukraine"><span>Russia's attack on Ukraine</span></a><span> more than three years ago. </span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/explosions-ring-out-across-irans-capital-as-israel-claims-it-is-attacking-the-country/49e40c56-6e92-46ca-8d1c-b4edef51d5a2"><strong><span>Trump warns Iran that Israel is planning 'even more brutal' attacks</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Brent crude, the international standard, climbed $4.58 ($7.07) to $73.94 ($114.08) per barrel, also the largest single-day jump since the Russian invasion.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Oil prices are likely to rise in the short term but the key question is whether exports are affected, said Richard Joswick, head of near-term oil at S&amp;P Global Commodity Insights. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"When Iran and Israel exchanged attacks previously, prices spiked initially but fell once it became clear that the situation was not escalating and there was no impact on oil supply," he wrote in an emailed analysis.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/israel-iran-strikes-global-financial-markets-react-wall-street-oil-prices-surge/00c997b2-2748-44ed-b15e-4a05a5171564" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Oil price risk premiums could rise sharply if Iran conducts broader retaliatory attacks, especially if on targets other than in Israel," Joswick said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>China is the only customer for Iranian oil but could seek alternative supplies from Middle Eastern exporters and Russia, he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Iran's oil trade is restricted by Western sanctions and import bans, and Israel exports only small amounts of oil and oil products.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Boeing shares are down one per cent after falling nearly five per cent on Thursday when one of the aerospace giant's </span><a href="https://www.9news.com.au/world/air-india-plane-crash-everything-we-know-miraculous-survival-passenger-vishwash-kumar-ramesh/126debf7-2bd5-4ebc-9e50-a0c7f93bd270" rel="" target="" title="planes crashed in India, killing all but one of the 242 people on board as well as several on the ground"><span>planes crashed in India, killing all but one of the 242 people on board as well as several on the ground</span></a><span>. The plane operated by Air India was the first fatal crash of a Boeing 787 Dreamliner since it went into service in 2009.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The cause of the crash is unknown.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GE Aerospace, which makes engines for Boeing, is down close to two per cent after it announced it was postponing next week's investor day in light of the tragic crash.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In Europe at midday, Germany's DAX dropped 1.3 per cent and the CAC 40 in Paris gave up 0.9 per cent. Britain's FTSE 100 slipped 0.2 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The yield on the 10-year Treasury fell to 4.35 per cent from 4.41 per cent late on Wednesday and from roughly 4.80 per cent early this year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In currency trading early on Friday, the US dollar rose to 144.12 yen, while the euro eased to $1.1511 ($1.78). The yield on US 10-year Treasurys fell to 4.35 per cent. Bond yields and prices move in opposite directions.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurys and the dollar often rise when investors feel less inclined to take risks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Coming later on Friday is the University of Michigan's consumer sentiment report.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Next week brings the Federal Reserve's two-day policy meeting where it will make a decision on its benchmark interest rate. The nearly unanimous expectation on Wall Street is that the US central bank will stand pat again.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Fed has been hesitant to lower interest rates, and it's been on hold this year after cutting at the end of last year, because it's waiting to see how much US President Donald Trump's tariffs will hurt the economy and raise inflation.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In Asia, Tokyo's Nikkei 225 fell 0.9 per cent to 37,834.25 while the Kospi in Seoul edged 0.9 per cent lower to 2,894.62. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Hong Kong's Hang Seng retreated 0.6 per cent to 23,892.56 and the Shanghai Composite Index lost 0.8 per cent to 3,377.00. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's S&amp;P/ASX 200 drifted 0.2 per cent lower to 8,547.40.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"An Israeli attack on Iran poses a top ten of our global risk, but Asian markets are expected to recover quickly as they have relatively limited exposure to the conflict and growing ties to unaffected Saudi Arabia and the UAE," said Xu Tiachen of The Economist Intelligence.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f"><em><strong><span>DOWNLOAD THE 9NEWS APP</span></strong></em></a><em><strong><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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