“Israel Launched War on Iran: Triggers Market Chaos as Oil Soars and Stocks Sink”
As of Sunday, June 15, 2025, the Israel has initiated a military attack against Iran, is escalating and is leading to significant geopolitical and economic repercussions. This escalation has already impacted global markets, and the situation is expected to influence trading when markets reopen on Monday, June 16.
Oil Prices Surge
The conflict already has disrupted key energy infrastructure, including Iran’s South Pars gas field—the world’s largest—and Israel’s Haifa oil refinery.
While oil exports have not been directly affected, the heightened risk of further disruptions, especially in the Strait of Hormuz, has driven oil prices higher.
Brent crude and WTI have risen over 10% this week, with prices approaching $90 per barrel.
Market Volatility
U.S. stock indices experienced declines on Friday due to escalating tensions.
The S&P 500 fell 1.14%, and the Cboe Volatility Index (VIX) spiked to a three-week high, indicating increased investor anxiety . Asian markets, including the Nikkei and Hang Seng, are also expected to open lower on Monday.
Impact on Indian Markets
India, a major oil importer, faces several challenges
- Rising Inflation: A $10 increase in crude oil prices could raise India’s inflation rate by 0.4%-0.6%
- Currency Pressure: The Indian rupee may weaken against the dollar due to higher import costs
- Stock Market Volatility: The Sensex and Nifty indices have already shown signs of strain, with declines in sectors sensitive to fuel costs
Safe-Haven Assets
Investors are flocking to gold and the U.S. dollar as safe-haven assets. Gold prices have reached new highs amid the uncertainty.
Outlook for Monday
Markets are likely to remain volatile on Monday, with potential for further declines in equities and continued pressure on oil prices. Investors may consider reallocating portfolios to defensive sectors or safe-haven assets to mitigate risks.
