Truce hopes between Israel and Iran spark market rebound

From Yahoo Finance: 2025-06-16 17:02:00

Investor sentiment and risk appetite rebounded sharply on Monday as fears over the Israel-Iran conflict subsided. Markets shifted focus to central bank policy meetings. Wall Street rebounded, oil prices slid 4%, gold dropped over 1%, and the dollar rose 0.5% against the yen. Next, investors will monitor central bank decisions.

Signs of de-escalation between Israel and Iran sparked a market rebound. Gold hit $3,451 an ounce, oil settled 1.7% lower after a surge, and equity markets showed optimism. The dollar’s response to the conflict was weak, suggesting a fading safe-haven appeal. Resilient stock markets continue to weather geopolitical shocks.

The dollar’s historically strong response to geopolitical risks appeared weakened by recent conflict between Israel and Iran. Investors are reassessing their high exposure to dollars due to U.S. policies. Despite the dollar’s structural risks growing, it remains a dominant currency. Markets await key central bank meetings amid geopolitical tensions.



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