Crude oil prices spiked by over $10 on the initial news that Israel was bombing Iran’s nuclear facilities and targeting its key military leaders. The price surge should be expected, given that Iran accounts for slightly over 3% of global production and, more importantly, holds 12% of the world’s proven crude oil reserves.

Tensions between the U.S. and Iran have been rising, but the big moves in gold and oil prices can help gauge just how serious the situation has become — and hint at what’s next for global financial markets.

Stocks rose and oil prices pulled back on Monday as fears of a wider Middle East conflict eased even as Israel and Iran pounded each other with missiles for a fourth day.However, concerns over the conflict spreading appeared to have eased,