Dow, S&P 500, Nasdaq dive, oil surges as Israel and Iran trade strikes

US stocks fell on Friday after Israel's attack on Iran and Iran's retaliation shook global markets, pushing oil prices to their highest level since January.

The Dow Jones Industrial Average  tumbled nearly 1.8%, or almost 800 points, as investors steadily fled riskier assets. The S&P 500 dropped about 1.1%, while the tech-heavy Nasdaq Composite  fell 1.3%.

The major averages sank to a session low in the afternoon after Israeli defense forces said dozens of Iranian missiles were launched at Israel and "all of Israel is under fire." Iran called Israel's strike a "declaration of war."

Iran's response came after Israel conducted overnight what it called a "preemptive strike" against Iranian targets, citing fears over the development of nuclear weapons. Crude oil prices soared more than 7%, paring gains of as much as 13% as the strikes hit the third-largest OPEC producer. Gold  futures also jumped around 1.5% as investors flocked to the safe-haven asset.

Israel's prime minister, Benjamin Netanyahu, has vowed that the operation against Iran's nuclear and military facilities would continue "for as many days as it takes," stoking fears of escalation. He said he expected "several waves" of retaliation from Iran.

President Trump urged Iran to "make a deal" over its nuclear program to avert further conflict in a post on social media. "JUST DO IT, BEFORE IT IS TOO LATE," he wrote.

Iran has threatened to target US assets in the Middle East as part of its "severe response." Earlier, Secretary of State Marco Rubio said Israel took "unilateral action" with no US involvement, as he warned Iran against targeting US interests and personnel.