After an initial surge in oil prices following the U.S. military’s attack on Iranian nuclear sites Saturday, the lasting impact on global markets remains uncertain. By Monday, stock futures were already lower.
President Donald Trump called the attack “a spectacular military success” during a televised address to the nation, stating that Iran’s “key nuclear enrichment facilities have been completely and totally obliterated.” He warned that the U.S. military could target other sites in Iran if the country does not agree to peace negotiations.
Meanwhile, investors have erred on the side of caution, with the expectation that U.S. involvement would lead to a stock market selloff and a possible bid for the dollar and other safe-haven assets when major markets reopened.
“I think the markets are going to be initially alarmed, and I think oil will open higher,” said Mark Spindel, chief investment officer at Potomac River Capital. “We don’t have any damage assessment and that will take some time. Even though [Trump] has described this as ‘done’, we’re engaged. What comes next?”
“I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It’s going to raise uncertainty and volatility, particularly in oil,” he added.
The price of ether, the world’s second-largest cryptocurrency by market capitalization and often viewed as a barometer of retail investor sentiment, dropped 8.5% on Sunday. Losses since the first Israeli airstrikes on Iran on June 13 have now reached 13%.
However, most Gulf stock markets appear to be unaffected by the attacks. The main indexes in Qatar, Saudi Arabia and Kuwait were either slightly higher or flat. Israel’s Tel Aviv main index closed at an all-time high.
Where is Iran located?
Iran is in Western Asia, also known as the Middle East. It’s surrounded by eight other countries: Iraq, Turkey, Armenia, Azerbaijan, Turkmenistan, Afghanistan, Pakistan and Kuwait.
— Reuters contributed to this report.
This article originally appeared on Austin American-Statesman: Are oil prices up? Investors cautious amid ‘uncertainty’ after US bombs Iran nuclear sites
Reporting by Alexis Simmerman, Austin American-Statesman / Austin American-Statesman
USA TODAY Network via Reuters Connect
