Investors cautious as world awaits Iran response, oil prices up, markets slightly down

From Yahoo Finance: 2025-06-22 19:37:00

Wall Street share futures slipped as investors awaited Iran’s response to U.S. attacks on its nuclear sites, causing oil prices to briefly hit five-month highs. Dollar saw minor safe-haven demand, while oil prices were up 2%, but off initial peaks. Optimists hope for Iran to back down, but analysts warn of potential oil price spikes. Key concern is access through the Strait of Hormuz, which handles 20% of global oil consumption.

Brent oil was up 1.9% at $78.46, U.S. crude rose 2% to $75.30, and gold edged up to $3,375 an ounce. Share markets resilient, with S&P 500 futures down 0.3% and Nasdaq futures down 0.5%. Nikkei futures slightly lower at 38,380.

Dollar edged up against the Japanese yen and euro dipped. Dollar index firmed. No rush to Treasuries for safety. Federal Reserve interest rate futures lower due to concerns of rising oil prices adding to inflationary pressures.

Markets see slim chance of Fed rate cut in July, with potential cut more likely in September. Fed officials to speak on potential impact of tariffs and Iran attack. Powell to face questions from lawmakers on these issues.

Read more: Shares dip in Asia, oil up as world awaits Iran response