Key Takeaways
- Crude Oil (#USOIL) prices skyrocketed 8.05% to $72.68 following the announcement of "Operation Epic Fury," a US-led military action against Iran.
- Iran retaliated with massive missile and drone waves striking targets in the UAE, Kuwait, and Israel, leading to the total closure of Iranian airspace.
- Safe-haven assets surged as Gold rose 2.67% to $5,420 and Silver gained 2.97%, while major equity indices like the NASDAQ and DOW fell approximately 1%.
- Speaker Johnson confirmed the "Gang of 8" was briefed earlier this week, citing Iran's nuclear ambitions and support for terrorist proxies as the catalyst for military intervention.
- Merck & Co (MRK) provided a rare positive corporate headline, announcing the FDA has accepted reviews for its Welireg plus Lenvima combination therapy.
US Initiates "Operation Epic Fury" Amid Nuclear Concerns
The United States and its allies have launched a significant military campaign titled Operation Epic Fury against the Islamic Republic of Iran. House Speaker Johnson confirmed that the administration moved forward with military action after decades of Iranian defiance regarding its nuclear program and the funding of proxies like Hamas and Hezbollah.
The Speaker noted that the "Gang of 8" received detailed briefings earlier this week, indicating that diplomatic solutions had been exhausted. Secretary of State Marco Rubio has reportedly been in close contact with congressional leadership as the situation develops, with the US aiming to protect personnel and interests in the region.
Iran Retaliates with Regional Missile Strikes
In immediate response to the US strikes, Iran’s Revolutionary Guard launched a "new wave" of missile attacks targeting US bases and regional allies. Reports indicate that Iranian missile debris fell on the Palm Jumeirah in Dubai, while a drone strike at Kuwait International Airport caused injuries to several workers and material damage to a passenger terminal.
Tehran has officially closed its airspace until further notice and claimed that the initial volleys consisted of "old stockpile" missiles. Iranian officials warned that they would soon unveil "weapons you have never seen before," signaling a potential escalation in the lethality of their counter-offensive.
Markets React: Oil and Gold Spike While Equities Retreat
Financial markets reacted with immediate volatility to the breaking conflict. Crude Oil (#USOIL) jumped 8.05% to trade at $72.68, reflecting fears of a prolonged disruption to energy supplies in the Strait of Hormuz. Gold prices climbed 2.67% to reach $5,420, as investors sought safety amid the geopolitical uncertainty.
Global equity markets saw broad selling pressure in weekend trading. The DOW (DIA) fell 0.99% to 48,373, while the NASDAQ (QQQ) dropped 1.11% to 24,641. Cryptocurrency markets followed the downward trend, with Bitcoin (BTC) slipping 1.5% to $64,528 and Ether (ETH) declining 1.54%.
Diplomatic and Corporate Developments
The UN Security Council is scheduled to meet later Saturday to discuss the escalating violence, following a request from the Russian mission. UK Prime Minister Keir Starmer has called for an immediate return to the diplomatic process, urging Iran to cease its "appalling violence" and refrain from further strikes.
Amid the geopolitical chaos, Merck & Co (MRK) reported that the FDA has accepted two supplemental New Drug Applications (sNDAs) for the combination of Welireg and Lenvima. Clinical data showed the combination reduces the risk of disease progression by 30%, offering a significant improvement in progression-free survival for patients.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.