Stocks surge, oil prices drop as Wall Street hopes for limited retaliation from Iran.

From Yahoo Finance: 2025-06-22 18:09:00

U.S. stocks surged, oil prices dropped on hopes Iran won’t disrupt global crude flow amid Israel conflict. S&P 500 rose 1%, Dow Jones up 0.9%, Nasdaq gained 0.9%. Oil price fell 7.2% to $68.51/barrel after Iran missile attack on Qatar, not targeting oil flow. Iran unlikely to close Strait of Hormuz due to economic reasons.

Analysts optimistic about short Israel-Iran conflict. Uncertainty remains over Iran’s next move. Oil market analyst warns prices could rise to $120-$130/barrel if Strait of Hormuz closes. Fed cautious on rate cuts due to potential economic impact of rising oil prices. Inflation could rise, keeping Fed rates unchanged.

Treasury yields eased after Fed Gov. Bowman’s rate cut support. 10-year Treasury yield fell to 4.33%, 2-year yield to 3.84%. Tesla stock surged 8.2% after self-driving cab test run in Austin. Hims & Hers Health plunged 34.6% after Novo Nordisk ended deal for obesity drug. S&P 500 up 57.33 points to 6,025.17.



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