On June 23, 2025, the US launched airstrikes targeting Iran's nuclear facilities at Fordow, Isfahan, and Natanz. While the strikes, timed over the weekend when markets were closed, surprised investors, stock markets reacted with muted caution. The Dow Jones Industrial Average opened marginally up by 15 points, and the S&P 500 and Nasdaq Composite indices registered small gains, as sentiment suggested that the US was avoiding further escalation.
Cryptocurrencies, however, registered sharper reactions, with Bitcoin (BTC) dipping briefly to lows near $98,300 before reclaiming levels above $101,000. The sudden sell-off reflects increased risk aversion after the strikes.
Oil prices experienced volatility, briefly spiking amid fears of a potential blockade of the Strait of Hormuz—a critical passageway for 25% of global oil trade—but retreated to around $74 per barrel by Monday's market open. The volatility stems from Iran’s parliament approving a prospective closure of the Strait, pending national security approval, raising concerns about supply disruptions. Goldman Sachs warned Brent crude prices could surge to $110 per barrel if the blockade holds for a month.
Meanwhile, gold prices edged lower as the initial rush to safe havens subsided. The broader market remains cautious due to possible retaliations from Iran against US forces, potentially within days, although no immediate escalations were observed during the US market open.
US stock futures had earlier dipped, with Dow futures falling 350 points before narrowing losses. Asian markets also faced pressure amid geopolitical uncertainties and weaker local currencies. China's real estate sector reported a significant revenue decline, adding to market concerns. The US Federal Reserve maintains a cautious stance on rate cuts, with expectations shifting toward possible easing in September rather than July.