Why global markets are brushing off U.S. strikes on Iran
Timothy A. Clary | AFP | Getty Images
Participating in the war between Israel and Iran, the United States may seem like a geopolitical glare point to round the markets. Instead, investors are largely climbing shoulder, they believe that many strategist conflicts will be included, and even rises for some risk assets.
From the time of Singapore, the MSCI World Index, which follows more than a thousand large and moderate CAP companies, decreased only 0.12%. Secure has been mixed and weakened by 0.64% against Japanese Yen dollars, while spot gold prices fell by 0.23% per ounce. The dollar index, which measures the US dollar against a money basket, increased by 0.35%.
In general, market reactions after US strikes were less aggressive, especially longer than a week when Israel launched air strikes against Iran.
Wedbush General Manager Dan Ives, the Iran-Israeli conflict has spread to the rest of the region and consequently more isolated “said,” Markets Nuclear threat to Iran is now for the region. “He said.
Although the weight of the latest developments should not be rejected, they are not seen as a systemic risk for global markets, but other industrial experts repeated.
On Saturday, US President Donald Trump said that the US attacked Iran’s nuclear areas. Traders closely follow Iran’s possible counter -measures following the US strikes on the US nuclear facilities.
Potential closure of Iran’s Bosphorus
The Iranian Foreign Minister warned that he had kept all options to defend his country’s sovereignty. According to the Iranian state media, the country’s parliament also approved the closing of the Hormuz Strait, which is a very important waterway for global oil trade, and every day, approximately 20 million barrels of oil and oil products have passed.
“Everything depends on how Iran reacts,” said Peter Boockvar, Bleakley Financial Group Chief Investment Officer. “If they accept the end of their military nuclear desires… Then this conflict may be the end of this conflict and the markets will be good.” Boockvar does not believe that Iran will deteriorate global oil supply.
Marko Papic, the chief strategy of Geomacro Strategy, said the worst script would be realized for the markets if it was to close Iran’s Strait.
“If they do it, oil prices are caught in the north of $ 100, fear and panic, shares fall minimum ~ 10% and investors run to Safe Havens.” He said.
However, Papic added that the markets were suppressed considering the “limited vehicles” that Tehran was in retaliation.
The idea of closing the water path was a rhetorical repetitive from Iran, but experts have never taken action by emphasizing that it was not possible.
In 2018, Iran warned that the US could prevent the Hormuz Strait after leaving the nuclear agreement and restored the sanctions. Similar threats, in 2011 and 2012, including the President Mohammad-Reza Rahimi, including senior Iranian officials, Western countries due to nuclear activities of Iran’s oil exports to the export of more sanctions can be closed, he said.
“Tehran understands that if they’re going to close the bull, retaliation from the United States will be fast, punishing and cruel.”
Similarly, Ed half, the founder of the research, said that the latest events did not shake the conviction in the US bull market.
“Geopolitically, we think Trump has rebuilt America’s military deterrence capabilities, so that ‘peace with power’ mantra increases the reliability,” he said, and added that it targets 6,500 for the S&P 500 by the end of 2025.
Although it is a “treacherous exercise” to predict the geopolitical developments in the Middle East, the region believes that the region is for a “radical transformation” because the Iranian nuclear facilities are destroyed.
