By John Meyer, consultant in financial affairs – Eurasia Business News, June 17, 2025. Article no. 1568.
On Tuesday, June 17, U.S. stock markets slipped while oil prices rose amid escalating tensions between Israel and Iran. The S&P 500 index fell about 0.8%, dropping approximately 50 points to 5982.73, reflecting investor caution as the conflict intensified.
Similarly, futures for the Dow Jones and Nasdaq also declined by around 0.4-0.5%.
Oil prices surged due to concerns over potential supply disruptions caused by the conflict. West Texas Intermediate crude rose about 2.2% to $73.35 per barrel, continuing a volatile trend driven by fears that the conflict could affect oil facilities or key shipping routes like the Strait of Hormuz, a critical chokepoint for global oil flow.
U.S. oil futures climb 4.3% to highest close since January.
The Strait of Hormuz is particularly sensitive because about one-third of the world’s seaborne oil passes through it, and Iran has threatened to close it if attacked.
Despite the market downturn on Tuesday, there has been some earlier optimism with stocks rebounding on Monday as investors hoped the conflict would not escalate into a broader regional war. However, analysts warn that markets might be underestimating the risks of a significant escalation, especially in the energy sector, which could have wider economic consequences.
The gold market continues to consolidate below $3,400 an ounce. Gold prices were lower in midday U.S. trading Tuesday. Risk appetite in the general marketplace has improved a bit this U.S. holiday-shortened trading week and that’s bearish for safe-haven gold. However, silver prices are sharply up and hit a 13-year high, on technical buying and on perceived value buying, given gold’s steep ascent to record highs in recent months. August gold was last down $16.40 at $3,401.
The Israel-Iran conflict is currently causing oil prices to rise sharply while putting downward pressure on U.S. stocks, reflecting investor concerns about geopolitical risks and their potential impact on energy supplies and inflation.
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© Copyright 2025 – Eurasia Business News. Article no. 1568.
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