Dow, S&P 500, Nasdaq futures sink, oil surges as Israel launches strike against Iran

US stock futures fell Thursday as an Israeli attack on Iran shook global markets, leading oil prices to spike as the Israeli defense minister declared a state of emergency.

Futures attached to the Dow Jones Industrial Average dropped 1.5%. S&P 500 futures plunged 1.6%, and those attached to the tech-heavy Nasdaq 100 sank 1.7%.

On Thursday night, Israel conducted what it called a "preemptive strike" against Iran, citing fears over development of nuclear weapons in Tehran. Explosions erupted across the Iranian capital, reports said. Crude oil soared 8% as the strikes hit the third largest producer in OPEC+. The safe-haven asset of gold jumped as much as 1%.

Overall, stocks have edged up this week as a trade deal between China and the US, as well as unexpected signs of softening inflation, boosted investor sentiment.

On Friday, Wall Street will get insight into how consumers are faring amid tariff uncertainty with the latest University of Michigan survey.

Next week, Wall Street's attention will shift to the Fed with policymakers set to issue their next decision on interest rates on Wednesday. Analysts expect the central bank to hold rates steady.