Investors on Edge as Trump Strikes Iran and Oil Prices Surge

The U.S. attack on Iran’s key nuclear sites has sent shockwaves through oil markets, with crude prices jumping over 10% since the conflict began on June 13. Analysts now anticipate Brent crude could rise an additional $3 to $5 per barrel when trading resumes. A potential Iranian retaliation—such as blocking the Strait of Hormuz, a critical chokepoint for global oil supply—could push prices beyond $100, exacerbating inflationary pressures and forcing the Federal Reserve to maintain higher interest rates for longer.

Market sentiment has shifted sharply toward safe-haven assets. Gold, the Swiss franc, and U.S. Treasuries have seen increased demand, while the dollar has gained nearly 1% amid the turmoil. Yet, skepticism remains about the greenback’s resilience, given the TRUMP administration’s past fiscal policies. Traders are bracing for further volatility as geopolitical tensions overshadow key economic data, including Fed inflation reports and corporate earnings.