Global Markets Tumble as Geopolitical Tensions Spike; Oil and Defense Stocks Rally

U.S. equities plunged sharply on Friday, erasing weekly gains as escalating military conflict between Israel and Iran triggered a flight from risk assets. The Dow Jones Industrial Average dropped 1.79%, with the S&P 500 and Nasdaq shedding 1.13% and 1.30% respectively. Israel''s strikes on Iranian nuclear facilities late Thursday prompted retaliatory missile launches during U.S. trading hours.

Commodities surged amid the turmoil. Brent crude oil spiked 7%, briefly rocketing 14% in Asian trading, while WTI approached $74 per barrel. Safe-haven Gold climbed 1.4% to $3,432/oz, nearing April''s record high. Defense contractors Lockheed Martin and RTX gained 3% as ExxonMobil rose 2%.

The selloff reverberated globally, with European and Asian markets losing over 1%. Treasury yields reversed early declines, the 10-year note jumping 7.9 bps to 4.436% as haven demand waned. The dollar index rebounded 0.5%.

President TRUMP warned Iran of consequences after nuclear talks collapsed, while the University of Michigan''s consumer sentiment index unexpectedly surged to 60.5 in June. Market volatility is expected to persist as geopolitical risks dominate trader focus.