The recent escalation of conflict between Israel and Iran has sent shockwaves through global financial markets.
🚨 The Iranian regime has launched another barrage of ballistic missiles from inside Iran, triggering red alert sirens across Israel – once again deliberately targeting Israeli civilians. pic.twitter.com/jocYRm7M16
— Israel ישראל (@Israel) June 15, 2025
Stock futures saw a slight rebound early Monday as the surge in oil prices, triggered by the attacks, showed signs of easing. However, gains were muted as investors remained cautious about the rising geopolitical risks and their potential impact on the global economy.
Iran made its intentions clear; we had no choice but to act.
As Iran moves toward nuclear weapons and targeting innocent civilians, the IDF is taking action to protect Israel and to stop a threat the world can’t afford to ignore.
Via @IDF pic.twitter.com/62jivby96U
— Israel ישראל (@Israel) June 15, 2025
Israel and Iran have been targeting each other’s energy facilities, with Iran even threatening to shut down the Strait of Hormuz, a critical route for global oil trade. This ongoing conflict could further destabilize the global economy and financial markets. On Friday, the Dow recorded a steep loss of over 700 points, with all major indexes falling by more than 1% for the day.
Further to the earlier post, here is the link to the Financial Times article on the economic and financial implications — direct and indirect — of Israel's attack on Iran.https://t.co/LT6oT8TMtg#economy #markets @FT
— Mohamed A. El-Erian (@elerianm) June 13, 2025
This marked a downturn for the week, with the Dow down by 1.3%, the S&P 500 by 0.4%, and the Nasdaq Composite by 0.6%. Oil prices initially surged following the Israeli attacks, with crude jumping more than 3% late Sunday. This added to Friday’s substantial gains after Israel launched a series of airstrikes targeting Iran’s nuclear and missile programs.
Israel-Iran conflict impacts markets
The strikes represent the most significant attack on Iranian territory since the 1980s, with potential for broader regional escalation. Ed Mills, a policy analyst at Raymond James, noted the increased regional risks and the potential involvement of global powers like the U.S. and Russia in the coming weeks.
Despite these tensions, some top tech stocks showed gains in premarket trading, with Tesla rising nearly 2% and Meta up almost 1%. Investors are also keeping an eye on upcoming manufacturing survey data and the Federal Reserve’s interest rate decision on Wednesday. Asia-Pacific markets saw gains as investors digested recent Chinese economic data and assessed the Israel-Iran tensions.
China’s retail sales jumped 6.4% year-on-year, while industrial output growth moderated to 5.8%. Key indexes across mainland China, Hong Kong, Japan, South Korea, Australia, and India posted varied gains. Oil prices remain volatile, with crude futures up significantly after recent attacks.
The Brent benchmark rose, marking its biggest single-day move since Russia’s invasion of Ukraine in March 2022. Investors will continue watching for further developments in the Middle East conflict and their broader implications for global markets in the days ahead.
