Dow falls 600 points after Israel strikes Iran, spiking oil prices: Live updates

Stocks tumbled early Friday after Israel launched a wave of airstrikes on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.

The Dow Jones Industrial Average fell 606 points, or nearly 1.4%. The S&P 500 dropped roughly 0.9%, while Nasdaq 100 futures lost 1%.

Nvidia, Tesla and other stocks that have lead the market’s comeback from the April lows dropped as investors shed risk. Oil and defense stocks were higher. Exxon and Chevron added more than 2% and 1%, respectively, while Lockheed Martin jumped about 3%.

The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials said that there is no U.S. involvement or assistance, according to NBC News.

Brent crude futures and West Texas Intermediate crude futures both surged more than 8%. WTI crude oil neared $74 a barrel. Gold prices rose to a near two-month high, driven by safe-haven demand.

“This conflict adds challenges to the already sizable collection of worries being maintained by the markets–those aren’t going away. At the bare minimum the spike in crude, if it persists, will have an almost immediate impact on inflation numbers,” said Mark Malek, chief investment officer of Siebert Financial.

President Donald Trump, in a Friday morning post on his social media site Truth Social, warned Iran to come to the negotiating table.

“There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire,” Trump wrote. “No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE.”

Trump said in a separate early morning post that he is giving Iran “perhaps, a second chance” to strike a nuclear deal. “Two months ago I gave Iran a 60 day ultimatum to “make a deal.” They should have done it! Today is day 61,” he wrote.

Separately, a closely watched University of Michigan survey released Friday indicated an uptick in consumer sentiment last month. The university’s Survey of Consumers rose to 60.5 in June, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago.

Stocks were on track for gains on the week before Friday’s sell-off. The S&P is down 0.2% this week, while the 30-stock Dow and Nasdaq have lost 1% and 0.5%, respectively.