President Trump strikes Iran, sparking market uncertainty and potential oil price spikes

From Yahoo Finance: 2025-06-23 10:08:00

President Trump launched a surprise strike on Iran’s nuclear sites, escalating tensions in the Middle East. Markets held steady post-escalation, but US stock futures fell. Bitcoin prices dropped, while WTI and Brent futures jumped. Oil saw a third consecutive week of gains on Friday.

Analysts warn of potential risk-off reaction in US equities amid escalating conflict. Concerns include national security uncertainty impact on equity valuations, geopolitical tensions stalling sentiment recovery, and potential spike in oil prices fueling inflation concerns. Energy sector tends to outperform with rising oil prices.

Citi analyst warns sharply higher oil prices remain a channel for geopolitical risks to impact stock markets. Options markets now price in a 10% chance of oil surging 20% in the next month. Despite volatility, stocks showed resiliency amid extreme oil volatility and unstable geopolitical headlines, posting a risk-on week.

Read more: Dow, S&P 500, Nasdaq rise, oil prices trim gains as Wall Street weighs Iran’s next move