The recent Israeli attack on Iran and the subsequent retaliation have significant implications for global markets, particularly for US stock exchanges and oil prices.
Background of the Conflict
On June 13, 2025, Israel conducted a massive attack on Iran, targeting dozens of sites, including nuclear facilities, military command centers, and scientists. The attack was deemed necessary by Israel to counter what it perceives as an Iranian threat, accusing the Iranian government of having begun the construction of nuclear weapons. Israeli Prime Minister Benjamin Netanyahu emphasized that the attack aimed to push back the Iranian nuclear program and ensure Israel’s security.
Reactions and Consequences
The Iranian response to the attack was fierce. Iran launched a massive retaliation, firing hundreds of rockets at Israel. This escalation has raised significant concerns in the region, as the US, while supporting Israel, has not announced any offensive military measures to back the attack.
Impact on the Markets
The conflict has immediately affected financial markets. Significant losses were recorded on US stock exchanges on Friday, with the S&P 500 dropping by over one percent and the Dow Jones falling sharply. These reactions are attributed to the uncertainty and fear of further escalations.
Additionally, an increase in oil prices is expected, as the conflict occurs in a region crucial for global oil supply. Such a price increase could have far-reaching implications for the world economy, as higher oil prices can lead to increased production costs and inflation.
International Reactions
The international community is watching the situation with great concern. The US has so far opposed military support for the Israeli attack, focusing instead on diplomatic efforts to prevent further escalation. However, the tensions between Israel and Iran remain a long-term issue that will continue to affect regional and global stability.