Israel’s conflict with Iran sends tremors through markets

June 16, 2025 (MLN): Israel’s airstrikes on Iran sent reverberations through financial markets.

Oil prices jumped on fears that supply from Iran, the world’s ninth-largest oil producer in 2023, would be disrupted.

Prices of gold, the stalwart shelter in times of crises, rose, as per CNBC.

Investors flock to the precious metal amid uncertainty because it serves as a stable store of value that is mostly resistant to exogenous shocks, such as inflation or geopolitical conflicts.

And the dollar strengthened, as it is wont to do when the world looks ugly.

The fact that the dollar increased in value against other currencies traditionally perceived as safe havens, such as the Swiss franc and Japanese yen, emphasizes the primacy of the king dollar.

This comes despite rumblings of de-dollarization and concerns over U.S. government debt.

Stocks, the financial risk asset epitomized, fell across markets globally.

Despite the markets giving multiple indications that we are entering a period of ugliness or, at least, volatility, U.S. stocks still appear resilient.

The surge in oil prices only brings us back to where they were about three months ago, as prices have been low since then, CNBC’s Michael Santoli wrote.

The markets have, indeed, mostly shrugged off Russia’s invasion of Ukraine and the Israel-Hamas war, both of which are still brewing.

But with the conflict between Israel and Iran still in its early days, it might pay to be extra cautious in the coming weeks.