The United States government has ordered all American citizens in Iraq to leave the country immediately, citing a heightened threat from Iran-backed militias. This directive comes as tensions remain high in the Middle East and follows statements from President Donald Trump suggesting a more aggressive stance towards Iran.

Market Reaction to Increased Tensions

Financial markets reacted to the escalating situation on Friday morning, the final session of a shortened trading week. Futures tracking Wall Street’s main indexes experienced a decline after President Trump indicated the possibility of attacks on Iranian energy infrastructure.

Oil Prices Surge

The prospect of further conflict led to a significant surge in oil prices, with Brent crude futures jumping approximately 7% to reach $108 per barrel. This increase reflects concerns about potential disruptions to oil supply in the region.

Energy Stocks Rise

Despite broader market concerns, energy stocks in the U.S. saw gains in premarket trading. Exxon Mobil rose 3.1% and Chevron increased by 2.6% as investors anticipated potential benefits from higher oil prices.

Market Uncertainty and Weekly Gains

Investment director at AJ Bell, Russ Mould, commented on the market’s reaction, stating, “Uncertainty is kryptonite for markets and between the contradictory messages from Trump, disputed claims on both sides, and the lack of clarity on a plan that can provide a resolution to the conflict, they are getting a heavy dose of it.”

Despite the current volatility, Wall Street’s three major indexes are still poised to record their largest weekly increase in four months. This would mark the first week of gains after a six-week losing streak, fueled by earlier optimism about a potential resolution to the conflict.