Potential U.S. conflict with Iran opens opportunity for stock buying, particularly in energy sector

From Yahoo Finance: 2025-06-22 08:05:00

President Trump ordered B-2 bombers to strike Iranian nuclear facilities, claiming total obliteration. Speculation arises on the success of the operation and potential U.S. involvement in another Middle East war. Investors ponder stock reactions, recalling the 2003 Iraq War, where stocks initially dropped then surged, ending the year up 26.4%.

Uncertainty surrounds Iran’s response, potential deals, or long-term missile defenses. Despite doubts on facility obliteration, Wall Street views attacks as a buying opportunity. Future trading will reveal market sentiments, but Iran’s missile capabilities and threats to choke off oil supply via the Strait of Hormuz raise concerns over stock performance.

Tensions boost oil prices, with crude oil climbing 29.3% and U.S. gasoline prices rising 4%. Energy sector stocks surge, led by APA, up 15.8%, Exxon Mobil up 9.3%, and Chevron rising nearly 9%. The Strait of Hormuz blockage could further spike oil prices, impacting global economic stability.

Upcoming earnings reports include FedEx, Carnival, Micron Technology, and Nike. FedEx earnings are estimated to rise to $5.89 a share, Carnival anticipates a 118% increase in earnings, Micron Technology projects a 156% rise in earnings, and Nike’s revenue estimate drops 15.1% year-over-year. Market experts predict varied outcomes based on each company’s performance.



Read more at Yahoo Finance: It sounds sick, but Iran hostilities may be good for stocks