Analysts expect that oil prices will see an initial rise, and market uncertainty will significantly increase. Investors are closely monitoring potential retaliatory measures from Iran, especially the potential threat to the crucial energy passage of the Strait of Hormuz.
Trump announced a "successful attack" on Iran's nuclear facilities, and the market is facing new risks and challenges.
According to reports from CCTV News and Huanqiu.com, U.S. President Trump announced on Saturday that a "very successful attack" had been carried out on three of Iran's nuclear facilities, and this sudden military action has raised investor concerns about market volatility and energy price impacts.
Trump posted on Truth Social, stating that "all planes are safely on their way home" and mentioned that "now is the time for peace." This military action sharply contrasts with the expectations from negotiations two weeks prior.
Analysts expect that oil prices will see an initial rise, and market uncertainty will significantly increase. Investors are closely monitoring potential retaliatory measures from Iran, especially the potential threat to the crucial energy passage of the Strait of Hormuz.
Wall Street Analysts have differing views on the subsequent market impact; some believe this will boost confidence in the stock market, while others are concerned it will increase inflationary pressures and geopolitical risks.
The energy market faces direct impacts.
Mark Spindel, Chief Investment Officer of Potomac River Capital in Washington, stated that there will be initial panic in the market, and oil prices may rise.
Uncertainty will overshadow the market, and Americans will face risk exposure everywhere. This will increase uncertainty and volatility, especially in the oil market.
Jamie Cox, managing partner at Harris Financial Group in Virginia, predicts, "Oil prices will definitely soar due to this news, but may stabilize within a few days." He believes that by demonstrating force and completely destroying Iran's nuclear capability, Iran has lost all leverage and may seek a peace agreement.
Jack Ablin, chief investment officer at Cresset Capital, warned that this event "adds a complex new layer of risk that we must consider and watch," which will have a clear impact on energy prices and may push up inflation.
Stock market reactions are expected to be mixed.
Mark Malek, chief investment officer at Siebert Financial in New York, holds an optimistic view of the stock market outlook. He stated, "I think this will be very positive for the stock market," especially considering that this seems to be "a one-time action," rather than seeking a long-term conflict.
Malek pointed out that if Trump had made a decision last Friday, the market would have faced two weeks of volatility. In contrast, a rapid military action would provide comfort, provided the U.S. does not seek a lasting conflict.
However, Analysts remain vigilant about the greatest risk in the Strait of Hormuz. Malek emphasized that if Iran has the capability to block this crucial strait, "it will definitely change everything."
Key observations before the market opens.
Investors are closely watching for early signals before the market opens on Sunday. Spindel stated:
There is plenty of time to consider before the market opens. I am arranging to talk to some people tomorrow. We will get early Indicators when the dollar starts trading in New Zealand.
Analysts generally believe that this 'bold move' stands in stark contrast to previous statements regarding negotiations in the coming two weeks. Market participants are assessing the damage assessment results, a process that may take time.
The core issue currently facing investors is Iran's potential countermeasures and whether this is truly, as Trump stated, a 'one-time' action or will evolve into a broader regional conflict.
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