Oil prices spiked then pulled back as US strikes Iran, causing market nervousness

From Investing.com: 2025-06-23 06:29:00

The US has joined the conflict between Israel and Iran by striking three Iranian nuclear sites, raising fears of further escalation. Oil prices spiked before pulling back, awaiting Iran’s response. Despite the dollar edging higher, gold failed to gain traction. Euro initially dipped but rebounded on positive June PMIs. Concerns grow that Iran may block the Strait of Hormuz, a crucial oil shipping route. Meanwhile, the uncertainty surrounding the situation has kept traders cautious, with doubts about Iran’s potential retaliation and the success of US strikes adding to market nervousness.

As the dollar continues to strengthen, safe-haven currencies like the yen and dollar are benefiting from the conflict. Euro slipped below $1.1500 but recovered slightly on upbeat German PMIs. UK data exceeded expectations, supporting the pound above $1.3400. Fed speakers will provide further insight, with speculation on potential rate cuts in July. Gold remains subdued as investors favor the dollar, while equities show resilience with US futures trading higher.



Read more at Investing.com: Oil Pares Gains as Mideast Conflict Escalates After US Strikes Iran