Asian stocks: Asian stocks slide, oil and gold jump after Israel strikes Iran

Stocks dived in early Asian trade on Friday, led by a selloff in U.S. futures, while oil prices jumped after Israel conducted a military strike on Iran, sending investors scurrying to safe havens such as gold and the Swiss franc.

The Israeli attack raises the risk of a fresh escalation in tensions in the Middle East, a major oil producing region, and comes at a time of heightened pressure on the global economy and financial markets from U.S. President Donald Trump’s shakeup of trade policies.

Market reaction was swift, with U.S. S&P E-mini futures slumping 1.5% as of 0055 GMT and Nasdaq futures skidding 1.7%.

Japan’s Nikkei lost 1.4% and South Korea’s KOSPI slipped 1.2%.

Brent crude jumped more than 6% to $73.56 per barrel. Gold climbed 1% to about $3,419 per ounce.

Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran, after what it called a “preemptive strike” over Iran’s nuclear programme.Explosions were heard northeast of Iran’s capital Tehran early on Friday, the state-run Nour News said.Two U.S. officials who spoke on condition of anonymity said Israel had begun carrying out strikes on Iran and there was no U.S. assistance or involvement in the operation. CNN reported that Trump was convening a cabinet meeting.

“Traders are scurrying for safety as reports of a strike on Iran cross the wires,” said Karl Schamotta, chief market strategist at Corpay in Toronto.

“But details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far.”

Tensions had been building as Trump’s efforts to reach a nuclear deal with Iran appear to be deadlocked. U.S. and Iranian officials were scheduled to hold a sixth round of talks on Tehran’s escalating uranium enrichment programme in Oman on Sunday, according to officials from both countries and their Omani mediators.

The Swiss franc gained about 0.4% to 0.8072 per U.S. dollar, and fellow safe haven the yen appreciated 0.3% to 143.06 per dollar.

The euro eased 0.3% to $1.1553, giving back a little of its 0.9% overnight jump.