📉 Market Outlook Amid Escalating Middle East Conflict

Monday, 16 June 2025

Following Israel’s recent strikes on Iranian nuclear facilities and Iran’s missile retaliation, global markets saw a brief spike in volatility. Oil prices jumped 13% but quickly stabilized. Despite fears of a broader war, historical patterns suggest that regional conflicts, while tragic, rarely derail global markets for long.

Iran accounts for just 4% of global oil output, and even disruption in the Strait of Hormuz seems unlikely to cause lasting damage due to high global inventories and flexible supply chains. Israeli markets, most directly exposed, were the top performers in 2024, signaling limited long-term risk perception.

While uncertainty may drive short-term moves, markets typically rebound quickly during bull runs – even amid war. Investors are urged to stay focused on fundamentals rather than reacting to geopolitical headlines.