Geopolitical tensions rise with US strike on Iran, causing stock futures to fall

From Yahoo Finance: 2025-06-23 09:30:00

President Trump launched a surprise strike on Iran’s nuclear sites, escalating tensions in the Middle East. Markets remained steady, but US stock futures fell. Bitcoin prices dropped 1.6%, while WTI and Brent futures jumped. Oil saw a third consecutive week of gains. Analysts warn of potential risk-off reactions in US equities due to geopolitical tensions. Energy sectors may outperform, while consumer discretionary sectors could lag.

Analysts express concerns about rising national security uncertainty affecting equity valuations and potential oil price spikes sparking inflation concerns. Energy sectors tend to outperform with rising oil prices, while others lag behind. Citigroup analyst warns of the impact of sharply higher oil prices on stock markets. Options markets are now pricing in a 10% chance of a 20% oil surge in the next month as conflict deepens. Despite volatility, markets showed resiliency.



Read more at Yahoo Finance: Dow, S&P 500, Nasdaq wobble, oil prices rise as Wall Street weighs Iran’s next move