Geopolitical tensions between Israel-Iran and anti-Trump protests increase market volatility

From Yahoo Finance: 2025-06-14 16:51:00

Investors are on edge as markets reopen with dual risks looming: the threat of a broad Middle East war and U.S.-wide protests against Trump. Israel launched strikes on Iran, prompting retaliatory airstrikes. Risky assets plummeted, oil prices surged, and safe havens like gold and the dollar saw increased demand.

Protests against Trump’s policies and a tragic shooting in Minnesota added to market uncertainty. U.S. stock indexes closed in the red, with the S&P 500 dropping 1.14% and oil and gold prices soaring. Geopolitical tensions between Israel and Iran escalated, potentially impacting oil supply and market sentiment.

The ongoing conflict between Israel and Iran poses a significant threat to global markets. With uncertainty high, investors are wary of taking risks, potentially limiting gains in the S&P 500. Market volatility is on the rise, with the Cboe Volatility Index reaching its highest close in three weeks, signaling increased risk aversion among investors.

The mix of global tensions and domestic unrest is creating a volatile market environment. Social unrest tends to increase volatility, and the Middle East crisis adds to the uncertainty. Investors are advised to remain cautious and monitor near-term volatility futures for potential hedging opportunities. The heightened risk levels call for a careful approach to market participation.



Read more at Yahoo Finance: Investors on edge over Israel-Iran conflict, anti-Trump protests