In a major development over the weekend, the United States launched airstrikes on three of Iran’s nuclear sites, pushing global markets into uncertainty and driving oil prices sharply higher.
The strikes — ordered by President Donald Trump — hit Iranian facilities in Fordo, Isfahan, and Natanz. This move comes after Trump said just last Friday that he would decide on military action “within the next two weeks.” The sudden escalation caught investors off guard, many of whom were expecting more time for diplomacy.
Stock Market Reaction
U.S. stock futures slid after the news:
- Dow Jones Industrial Average futures dropped 126 points (–0.3%)
- S&P 500 futures fell 0.26%
- Nasdaq 100 futures declined 0.35%
The market’s concern is clear: growing geopolitical tensions in the Middle East are shaking investor confidence.
Oil Prices Surge
Oil prices surged Sunday night as the possibility of a broader conflict rattled global energy markets.
- U.S. crude oil futures jumped 3.8%, hitting nearly $77 per barrel.
Experts warn the situation could worsen if Iran retaliates by targeting U.S. troops or closing the Strait of Hormuz, a critical passage for global oil shipments. Even the threat of closing the strait could push prices past $100 per barrel, according to analysts.
“Markets often overreact in the early days of a conflict,” said Jay Woods, chief global strategist at Freedom Capital Markets. “This fear-driven reaction could last a few weeks.”
Trump’s Warning & Global Concern
President Trump addressed the nation Saturday night, saying:
“There will be either peace, or tragedy for Iran far greater than we’ve seen over the past eight days.”
Meanwhile, U.S. Secretary of State Marco Rubio urged China — Iran’s biggest oil buyer — to intervene and help prevent the closure of the Strait of Hormuz.
What’s Next?
With the U.S. now fully involved in the Israel-Iran conflict, oil market experts believe we’ve entered a new phase.
Ahmad Assiri of Pepperstone commented:
“Even if Iran doesn’t block the strait, the chance of disruption has jumped from 5% to 15%. That alone is enough to keep oil prices elevated.”
Last week, the S&P 500 slipped 0.15%, marking its second week in the red. While still just 3% below all-time highs, the combined impact of war, oil price spikes, and Trump’s aggressive changes to global trade policy are increasing economic risks.
Key Takeaways:
U.S. bombed Iranian nuclear sites, escalating tensions in the Middle East.
Oil prices surged nearly 4% to $77 per barrel.
Stock futures dropped as investors braced for potential retaliation.
Iran might target U.S. troops or disrupt oil shipping routes.
Markets could face more volatility in the coming weeks.
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