Oil prices soared more than 12 percent and stocks sank Friday after Israel launched strikes on Iranian nuclear and military sites and warned of more to come, stoking fears of a full-blown war.

Investors ran for the hills on news of the attacks and a warning from Tehran that its regional foe faced a “bitter and painful” fate, while US President Donald Trump has said a “massive conflict” in the region was possible.

Prime Minister Benjamin Netanyahu said in a video statement: “This operation will continue for as many days as it takes to remove this threat.”

Army officials said intelligence showed that Iran was approaching the “point of no return” on its atomic program and could obtain a nuclear weapon in a “short period of time.”

Both main oil contracts, which had rallied earlier in the week on rising tensions, spiked more than 12% — hitting levels not seen since January — amid fears about supplies of the commodity.

They later eased back slightly after Iran said its key refineries and fuel depots were unaffected.

The rush from risk assets to safe havens saw equity markets across Asia and Europe tumble and bonds rally with gold, which popped above $3,400 an ounce.

US futures were deep in the red.

“The Middle East powder keg just blew the lid off global markets,” said Stephen Innes at SPI Asset Management. “Equity futures are plummeting. Bond yields are sinking. Gold and oil are skyrocketing,” he added.

“Brent crude futures are racing toward the mid-$70s range — but if the Strait of Hormuz, which accounts for 20% of global oil flows, finds itself in the blast radius, you can add another $15 to the bid.”

Innes added that: “If Iran holds back, we get a relief bounce. But if missiles start raining down on Tel Aviv or Tehran retaliates with real teeth, we’re staring down a scenario that could redefine the macro narrative for the rest of 2025.”

Banking giant JPMorgan Chase had warned just this week that prices could top $130 if the worst-case scenario developed.

Market sentiment had already been low after Trump sounded his trade war klaxon again by saying he would be sending letters within the next two weeks to other countries’ governments to announce unilateral levies on their exports to the United States.

The ‘take it or leave it’ deal spurred fears he would reimpose the eye-watering tolls announced on April 2 that tanked markets before he announced a 90-day pause.

Times of Israel staff contributed to this report.