New York, June 23, 2025
On Wall Street, traders hunched over screens, eyes darting between news of missile strikes in the Middle East and fluctuating oil prices, as the Iran-Israel conflict sent shockwaves through global financial markets. The escalating war, now in its second week, has investors grappling with fears of disrupted oil supplies and a potential economic downturn, even as some markets defy gravity with unexpected gains.
In Israel, the TA-125 Index soared 1.77% to a record high on Sunday, fueled by confidence in the nation’s military edge and U.S. backing. “The market is betting on Israel’s resilience,” said Tel Aviv-based analyst Miriam Cohen, as the TA-35 Index jumped 1.5% (Wall Street Journal). The surge, which capped five straight days of gains, stood in stark contrast to global unease.
In the U.S., the Dow Jones Industrial Average climbed 189 points, or 0.4%, on Monday, buoyed by steady oil prices and hopes of Federal Reserve rate cuts. Yet, the S&P 500 slipped 0.15% last week, its second consecutive decline, while the Nasdaq Composite eked out a 0.5% gain (CNBC). “It’s a tug-of-war between optimism and fear,” said Jane Larson, a portfolio manager at Goldman Sachs, which flagged rising energy costs as the biggest threat to global growth.
Asia-Pacific markets faltered, with Japan’s Nikkei 225 dipping 0.13%, South Korea’s Kospi falling 0.24%, and India’s BSE Sensex shedding 0.44%, as traders reacted to U.S. strikes on Iran’s nuclear sites (CNBC). Defense stocks, however, rallied: Northrop Grumman surged 2.07%, Lockheed Martin gained 1.13%, and RTX Corp rose 1.4% in premarket trading (CNBC). Cryptocurrencies took a hit, with Bitcoin tumbling 2% below $99,000 and ether dropping 5%, wiping out $1 billion in positions (CNBC).
The specter of Iran closing the Strait of Hormuz, a vital oil artery, looms large, though Brent crude held at $76.75, down 0.32% (CNBC). The IMF’s warning of a 40% chance of a U.S. recession this year added to the gloom (IMF World Economic Outlook). “We’re one headline away from panic,” Larson said, as markets brace for the conflict’s next twist.
