U.S. equity markets faced steep losses on June 13 amid growing conflict between Israel and Iran. The Dow Jones Industrial Average dropped 769.83 points (1.8%), while the S&P 500 fell 1.1% and the Nasdaq Composite slid 1.3%. Brent crude surged over 7% as concerns mounted over oil supply disruptions via the Strait of Hormuz, prompting investors to shift toward safe-haven assets like gold and Treasury bonds.

Key Highlights

• Dow dropped 769.83 points, S&P 500 lost 68.29 points, Nasdaq fell 255.66 points :contentReference[oaicite:0]{index=0}
• Oil prices spiked over 7%, with Brent closing above $73/barrel :contentReference[oaicite:1]{index=1}
• Volatility index (VIX) shot up ~17%, signaling investor anxiety :contentReference[oaicite:2]{index=2}
• Shift to defensive assets: gold rose, U.S. Treasuries rallied :contentReference[oaicite:3]{index=3}

Market Context

The sell-off follows Israeli strikes on Iranian nuclear and military assets, prompting retaliation and escalating tensions. Analysts caution that further unrest could trigger stagflationary pressures if it disrupts oil flow. Meanwhile, ongoing U.S. trade and debt ceiling negotiations add to market fragility.

Outlook

Investors are bracing for continued volatility. If tensions deepen, expect persistent flight-to-quality flows and elevated energy prices. The upcoming days will be critical in determining if diplomatic de-escalation occurs or if global markets face sustained pressure.