🚨 The Iranian regime has launched another barrage of ballistic missiles from inside Iran, triggering red alert sirens across Israel – once again deliberately targeting Israeli civilians. pic.twitter.com/jocYRm7M16
— Israel ישראל (@Israel) June 15, 2025
The escalating conflict between Israel and Iran has sent shockwaves through global markets, with investors closely monitoring the situation for potential impacts on oil supply and economic stability. Stock futures rebounded slightly early Monday as the spike in oil prices, driven by the hostilities, eased momentarily. However, gains were modest as traders remained wary of the rising geopolitical risks.
Iran made its intentions clear; we had no choice but to act.
As Iran moves toward nuclear weapons and targeting innocent civilians, the IDF is taking action to protect Israel and to stop a threat the world can’t afford to ignore.
Via @IDF pic.twitter.com/62jivby96U
— Israel ישראל (@Israel) June 15, 2025
Futures for the Dow Jones Industrial Average jumped 157 points, or 0.4%, while the S&P 500 and Nasdaq Composite added 0.4% and 0.5%, respectively. Oil prices pulled back to $72.64 a barrel after trading above $77 earlier in the overnight session. The conflict, now in its fourth day, has seen both countries targeting each other’s energy facilities.
Iran has suggested it may shut down the Strait of Hormuz, a critical route for global oil supplies. Israel claimed on Monday to have achieved “aerial superiority” over Iran, according to a military spokesperson.
Further to the earlier post, here is the link to the Financial Times article on the economic and financial implications — direct and indirect — of Israel's attack on Iran.https://t.co/LT6oT8TMtg#economy #markets @FT
— Mohamed A. El-Erian (@elerianm) June 13, 2025
Ed Mills, Raymond James’ Washington policy analyst, noted that “The strikes represent the largest attack on Iranian territory since the 1980s.
Israel-Iran conflict impacts markets
The risks of regional escalation are heightened.”
COLUMN: Israel, Iran and the oil market.
"With hindsight, every oil-price rally has proven to be an opportunity to sell. It required nerves of steel, but shorting crude while bombs and the missiles were flying was the winning trade"#Iran @Opinion https://t.co/bG6myvM2Lk
— Javier Blas (@JavierBlas) June 13, 2025
The hostilities led to a significant sell-off in stocks on Friday, with the Dow dropping more than 700 points. All three major indexes fell by more than 1% during the trading day, pushing them into negative territory for the week.
Investors will be monitoring manufacturing survey data due Monday morning, ahead of the Federal Reserve’s interest rate decision on Wednesday. Fed funds futures indicate a nearly 97% likelihood of the central bank keeping rates unchanged, despite pressure from President Donald Trump for a rate cut. Asia-Pacific markets rose on Monday as investors assessed the tensions and parsed data from China.
Mainland China’s index ended the day 0.25% higher, while Hong Kong’s added 0.7%. Japan’s Nikkei 225 rose, and South Korea’s Kospi index surged 1.8%. As the conflict continues, the uncertain economic outlook has left markets jittery.
Analysts caution that Iran could threaten oil exports from the Persian Gulf by blocking shipping traffic through the Strait of Hormuz, which would severely disrupt global energy markets. The relative calm and continuous output from the Middle East play a crucial role in providing equilibrium in a world closely monitoring any potential disruptions.
