Israel launched an airstrike on Iran. Stocks fell, oil soared 12%

Israel struck Iran in the early morning hours of June 13, attacking  «the very center of Iran's nuclear weapons program.» This announced by Israeli Prime Minister Benjamin Netanyahu in a televised address. Netanyahu said that the operation against Iran «will continue for as many days as it takes to eliminate the threat.» 

The extent of the Israeli attack and the damage it caused are unknown. The BBC reported the bombings in Tehran;

A state of emergency has been declared throughout Israel due to the threat of retaliatory drone and rocket attacks, reports CNBC. Israel also closed its airspace, reports Bloomberg. 

The U.S. did not participate in or provide any assistance to Israel in this attack, announced Secretary of State Marco Rubio. 

Oil rose sharply: the cost of Brent futures for delivery in August jumped by 12.1% to $77.7 per barrel. July WTI futures soared 12.6% to $76.6 a barrel. Iran is located on the northern side of the Strait of Hormuz and could block most oil exports from Iraq, Kuwait, Saudi Arabia and smaller Gulf states if it wanted to. Earlier this week, JPMorgan warned that in a worst-case scenario in the Middle East, oil prices could reach $130 a barrel.

Futures on the US stock indices S&P 500 and Dow Jones fell by about 1.5%. Futures on the Nasdaq 100 index lost 1.7%. Asian markets began trading in the negative: Japan's Nikkei 225 index fell by 1.7%, China's Shanghai Composite index - by 0.2%, Hong Kong's Hang Seng - by 0.4%. Due to the flight of investors to protective assets, spot gold priced by 1.1% to $3424.59 per ounce, bullion - by 1.3%.

  «The attack came at a critical time when macroeconomic and systematic funds have regained long positions and investor sentiment has become optimistic again,» quoted by Bloomberg strategist IG Tony Sycamore. - As we wait for further news and a possible response from Iran, we can assume a further deterioration in risk appetite as traders reduce risk positions ahead of the weekend.»

The Israeli airstrike on Iran was preceded by disagreements between U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu over negotiations on a new agreement on Iran's nuclear program, wrote The New York Times.

Since April, the U.S. and Iran have held five rounds of indirect talks, with the sixth set for June 15. The key contentious issue at the talks is uranium enrichment. The US has declared that it will not allow Tehran to enrich uranium and will demand the complete dismantling of Iran's nuclear facilities. For its part, Iran insists it will not sign an agreement banning uranium enrichment for civilian purposes.  

Netanyahu in turn suggested the use of military force against Iran. Two weeks ago, Trump called to refrain from any forceful action while negotiations continue. On June 11, Trump said he was becoming less confident that Iran would agree to stop enriching uranium. On June 12, he warned that a potential Israeli attack on Iran would likely destroy the chances of a diplomatic solution.