Israel-Iran War Long Term Impact: Forex, Oil, Gold, and Stock
Israel-Iran war and ongoing tensions are catching the eyeballs of global traders. Every day, there is a new update on the Israel-Iran war, which has been affecting the global market.
Many analyst even predicts that tension between these two countries might continue. So, in this Carlos and Company, we will see how different assets reacted to these tensions and future expectations if tension continues.
What Happened Between Iran and Israel in the last few days?
The Iran-Israel conflict is not new. The two nations have been fighting since 1979. Recently, on June 13, 2025, the tension again started when Israel launched the Airstrikes using over 200 aircraft on Iran.
Iran also responded to the action, and a full-fledged military confrontation started. Even now, tensions are going on, both nations has widened their attacks.
Here's a quick look at what you'll read
Oil price is expected to rise during the Israel-Iran war due to supply disruptions.
Oil tends to move upwards during war and geopolitical tensions.
Israel-Iran conflict disrupts the commodities supplies, as a result, natural gas might go up.
Gold tends to behave positively during the Middle East crisis. So traders can consider buying the safe haven asset, but after watching the overall market conditions.
Israel-Iran conflicts lead to temporary bearishness in the global stock market. So traders can consider going short for stocking depending on middle east economy.
Energy and oil stocks such as Exxon Mobile, defence and aerospace stocks such as Lockheed Martin, and Northrop Grumman are expected to rise during Middle East war news.
Israel-Iran Tension Impact on Diverse Financial Market
As soon as the Israel-Iran conflict news spread, diverse assets started reacting to it. So letās discuss what impact the tensions have made on the global market and if tensions continue, how different trading instruments will react:
Oil price reaction to Iran-Israel tension
The most significant impact Iran-Israel tension has had is on the oil prices. Oil passes through the Middle East sea lanes, and the Middle East crisis obviously disrupts the supplies.
Thus, oil reacted to the news. On Monday, the price of Brent crude oil reached $74.60, which was around 7% higher than on Thursday. Since then, significant volatility has been seen in the oil market, and you can even identify potential price swings in the chart.
Future Expectations
The market is experiencing strong bullish sentiment for oil. If tensions continue, the oil will see some increase.
Global Stock Market Reaction to Israel-Iran Tensions
Even the stock market canāt escape the Israeli surprise attack. On Monday global stock market experienced a decline. However, the decline was temporary.
The S&P 500 and Dow Jones fell by more than 1%. Even the European stock saw a minor decline. After that, the European stocks saw a modest gain. Even the Asian and US stock markets showed positive rallies. In the current scenario, the stock market conditions are stabilizing.
Future Expectations
If the tension continues, the Middle East stocks may see a drop. Although the European and US domestic stock markets may see a rise after a temporary drop.
Traders can consider investing in oil or energy stocks, Defence or Aerospace stocks if Iran and Israel tensions continue. As these stocks tend to rise during the Middle East conflicts.
Forex Market Reaction to Israel-Iran Tensions
On Monday, the Dollar Index opened with a bearish trend and tested daily lows at 97.70. However, later the price also showed recovery. The news has little impact on the forex market.
Future Expectations
If the tensions continue, the currencies with more commodity exports can see significant moves. During the Middle East crisis, traders should consider pairs such as USD/JPY, XAU/USD, and USD/CAD, as JPY is a safe haven currency to trade and commodity currencies are ideal to trade during a crisis.
Gold Prices Reaction to Israel-Iran Conflict
Gold was already in focus due to the tariff war between the US and China. And now, amid Middle East tensions, the asset again grabbed all traders and investors’ eyes.
The safe haven asset prices tend to increase during war and geopolitical tensions. Gold reacted positively to the Israel-Iran conflict. On June 16, the spot gold price reached $345. Since then, the precious metal has experienced a bullish trend.
Future Expectations
If the war-like conditions continue, investor will turn their investment to the gold market, boosting the price of the safe haven metal.
Wrapping Up: Why Most Traders Lose Money
The Israel-Iran War has impacted the diverse financial market, including gold, stocks, and oil. However, descalation talks are going on, and if the two nations agreed to it, the market would again become stable.
And if not then the financial market will experience significant volatility.
Thus, keep an eye on the Israel and Iran war update to plan your future trades.
If you want daily market analysis and news impact on diverse assets. You can seek the assistance of Carlos and Company. We provide comprehensive trade alerts after organizing proper fundamental and technical analysis of assets. Reach out to start a demo trial.
