Oil surged, stocks fell and investors sought safety in the U.S. dollar and government bonds after Israel struck Iranian nuclear and military targets in an attack that raised the risk of all-out war between them.

The most widely-followed gauge of Wall Street fear and uncertainty spiked on Friday, as Israel's surprise strike on Iran sent geopolitical tensions back to the top of investors' worry list. The Cboe Volatility Index,

Wall Street's main indexes fell on Friday after Israel's deadly strike on Iranian nuclear facilities inflamed tensions in the oil-rich Middle East and battered risk sentiment across global markets. Israel has warned that the widescale strikes were the start of a prolonged operation to prevent Tehran from building an atomic weapon.