Stock markets around the world slumped and oil prices surged after Israel on Thursday launched a military strike on Iran.

Two hours before the start of trade in the U.S., S&P 500 futures contracts fell 65 points, or 1.1%, to 5,984, while futures on the Dow Jones Industrial Average and Nasdaq Composite dropped 1.1% and 1.4%, respectively.U.S. benchmark crude oil jumped $4.97, or 7.3%, to $72.91 per barrel. Brent crude, the international standard, rose $4.78, or 6.7%, to $74.15 per barrel.

“Any remaining hopes for sub-$60 [barrel per] oil prices this year must now be buried. Israel’s attacks early Friday against Iran, directed against nuclear facilities, missile sites and senior personnel, are a marked departure from earlier exchanges between the two Middle Eastern powers,” Tom Holland, global research director with investment advisory firm Gavekal, told clients in a note.

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