Iran Foreign Ministry: Iran strike on US base in Qatar was self-defense (Agencies)@IRIMFA_EN #Israel #Iran #ceasefire #DonaldTrump pic.twitter.com/p8742M0u31
— ET NOW (@ETNOWlive) June 24, 2025
The stock market showed resilience on Monday, with major indices posting gains despite escalating tensions between the U.S. and Iran over the weekend. The S&P 500 rose 0.89%, the Nasdaq added 0.96%, and the Dow gained 0.94%. Investors largely shrugged off the geopolitical turmoil after the U.S. bombed key nuclear facilities in Iran.
Editor's Take | Trump steps in as peacemaker in the #IsraelIranConflict—crude slumps 15%, Asia opens strong, VIX cools off. Relief rally or calm before the next storm? @nikunjdalmia decodes what’s next for financial, commodity, global, and Indian markets!#Geopolitics… pic.twitter.com/zIynY2ArwO
— ET NOW (@ETNOWlive) June 24, 2025
Iran retaliated by attacking a U.S. military base in Qatar, but the missile strike was intercepted with no casualties reported. Wall Street was relieved that Iran’s response was more restrained than anticipated. Investors bet that the oil supply would not face significant disruptions, leading to a sell-off in oil prices throughout the day.
All in all, if #Iran's regime chose only to target U.S. bases in #Qatar and #Iraq, it's telling. Compared to the Iranian retaliation after Soleimani's elimination in 2020 when it focused on Iraq, it's a step up in terms of a response. But still Qatar is a safer choice for…
— Jason Brodsky (@JasonMBrodsky) June 23, 2025
President Donald Trump encouraged keeping oil prices low, arguing that doing otherwise would “play into the hands of the enemy.” Jim Cramer, host of CNBC’s “Mad Money,” noted that the market generally “moves on” from Middle Eastern conflicts as long as oil prices remain stable, minimizing impact on the U.S. economy. Other bullish developments also influenced investors positively.
Cramer assesses market resilience amid tension
Federal Reserve officials suggested potential imminent rate cuts, and positive news emerged about companies investing significantly in talent acquisition. Tesla CEO Elon Musk claimed a “successful” performance in Austin, Texas, further boosting investor confidence. Talks of a potential merger also added to the bullish sentiment.
My latest for @Spectator on the landscape after the unprecedented U.S. military strike on #Iran's nuclear program. It's a watershed moment which will change Iran, the region, and the American position in the world.https://t.co/dh47IaHKUo
— Jason Brodsky (@JasonMBrodsky) June 23, 2025
“I don’t think we could have had such a bullish day without those Fed officials floating the idea of imminent rate cuts, but it’s entirely possible that our government destroying Iran’s nuclear program has also contributed to easing concerns,” Cramer said. “This development may signal the nearing end of the conflict, reducing the threat of a spike in oil prices.”
As far as markets are concerned, the biggest risk would have been Iran shutting down the Strait of Hormuz and disrupting global oil supply. The tepid response in crude prices indicated that commodity traders did not see this as a likely scenario, which helps explain the stock market’s stability.
President Trump announced a peace deal between Israel and Iran on Monday, validating investor expectations of a short-lived conflict. Brent crude, the international oil benchmark, fell more than 8 percent on Monday, while U.S. stocks remain close to hitting new record highs.
