U.S. Stocks Plummet as Deadly Israeli Strike on Iran Sparks Fear of Regional War

The stock market in the U.S. is taking a nosedive, folks, as the deadly Israeli strike against Iran has everyone on edge, fearing a full-blown war in the Middle East.

On Friday, June 13, the major U.S. stock indices tanked big time, with the fear of a regional war sending investors scrambling for safety. The Dow Jones Industrial Average crashed 525.80 points, a brutal 1.22% drop, with almost every major stock bleeding red. The S&P 500 slid 0.54%, while the tech-heavy Nasdaq took a 100-point hit, down 0.53%.

The markets are freaking out over the potential economic fallout from the escalating tensions between Israel and Iran. Israel unleashed a series of deadly attacks on Iranian military and nuclear facilities. The Israeli government is claiming Iran's nuclear program is an existential threat, while Iran is promising a "legitimate and powerful response."

Altcoins Get Slammed by Global Tensions

The escalating conflict is making traders rethink their exposure to high-growth, high-risk assets like tech stocks. Big names like Nvidia took a 1.5% hit, and Apple dropped 1%. Meanwhile, investors are piling into traditional safe havens like gold and the dollar.

Crypto is feeling the heat from the Middle East tensions like no other asset class. The overall crypto market cap is down a whopping 2.7%, with Bitcoin (BTC) dropping 2.19% to $105k. But the real pain is in the altcoins, with Ethereum (ETH) and Solana (SOL) getting hammered, down 7.1% and 7.45% respectively.

The fear of a war between Iran and Israel is sending oil prices through the roof. At one point, crude oil spiked 14% to a high of $79 per barrel. Iran's location in the Persian Gulf, right next to some of the world's biggest oil producers, is a major factor here.

The soaring oil prices are stoking renewed fears of inflation, and that's at a time when U.S. tariffs on major trading partners are expected to add even more inflationary pressure. All this uncertainty could mean the Federal Reserve will hold off on those interest rate cuts, which is bad news for both tech and crypto markets.