Israel strikes Tehran as Trump says US negotiating to end war
Israel launched airstrikes on Iranian military sites on Thursday, driving oil prices up to a 6‑month high. President Trump announced the U.S. was negotiating a cease‑fire, adding uncertainty to the region.
The attacks follow Iranian missile launches toward Israel and a recent Iranian strike on a Saudi oil facility. U.S. diplomatic efforts have been stalled by the Biden administration’s cautious approach.
Oil majors like Exxon Mobil and Chevron saw gains as risk‑off sentiment turned risk‑on for energy. Defense contractors such as Lockheed Martin, Boeing, and Raytheon rallied on expectations of increased demand for air‑defense systems. The volatility in the commodities market signals a short‑term spike in geopolitical risk premiums.
Energy and defense sectors are most affected; traders should watch OPEC+ supply cuts and U.S. diplomatic progress. Future oil price swings will depend on how quickly a cease‑fire is reached and whether further strikes occur.
- Oil prices hit 6‑month highs amid Israel‑Iran tensions
- Defense stocks rally on expected demand for air‑defense
- Energy majors benefit from geopolitical risk premium