
Oil Prices Expected to Spike After Trump Bombs Iran’s Key Nuclear Sites
June 22 (Reuters): U.S. President Donald Trump declared on Saturday that American forces had conducted a “very successful attack” on three Iranian nuclear facilities, a move that analysts say will likely shake global markets. In a post on Truth Social, Trump added that “all planes are safely on their way home,” ending with a call for diplomacy: “Now is the time for peace.” But financial experts say peace might not come swiftly, as global markets brace for volatility, especially in oil and risk assets.
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“I think the markets are going to be initially alarmed, and I think oil will open higher. We don’t have any damage assessment yet and that will take some time. Even though he described this as ‘done,’ we’re engaged.
What comes next? Uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It’s going to raise volatility, particularly in oil.
There’s time before markets open on Sunday. We’ll get our first clue when the dollar opens in New Zealand. This was a bold action and a sharp contrast to earlier talk of negotiating.”
“Oil is sure to spike on this initial news, but may level in a few days. With this demonstration of force and potential total annihilation of Iran’s nuclear capabilities, they’ve lost leverage. A peace deal could now be imminent.”
“This may turn out to be very positive for the stock market. On Friday, we were bracing for two weeks of chaos, trying to interpret every whisper from the White House.
Now, this clear decision—especially if it’s a one-and-done—brings a measure of relief. But the real risk is still the Strait of Hormuz. If Iran moves to close it, all bets are off.”
“This introduces a complicated new layer of geopolitical risk. We’ll need to factor this into our models going forward.
There will likely be an impact on energy prices and potentially inflation. Investors will need to stay agile.”
While Trump hailed the strike as a path toward peace, markets will take time to process its true ramifications. With the Strait of Hormuz and Middle East geopolitics hanging in the balance, the next 48 hours may be critical for shaping financial sentiment as the world digests America’s boldest military move in the Iran conflict to date.
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