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Canada News.Net
23-06-2025
- Business
- Canada News.Net
Oil surge, market jitters expected after U.S. hits Iran facilities
NEW YORK CITY, New York: The U.S. bombing of Iranian nuclear sites has cast a shadow over global markets, with investors bracing for a sharp spike in oil prices and a potential flight to safety when trading resumes next week. Though Sunday saw a relatively muted response in Gulf equity markets, analysts and fund managers said the escalation marked a turning point, dragging the United States directly into the Israel-Iran conflict and raising the prospect of broader economic fallout. In a national address, U.S. President Donald Trump declared the strike a "spectacular military success," saying Iran's key nuclear enrichment facilities had been "completely and totally obliterated." Trump warned of further military action unless Tehran agrees to a peace deal. Iran responded sharply, vowing "everlasting consequences." Foreign Minister Abbas Araqchi said from Istanbul that Tehran would consider diplomacy only after retaliation. The broader market reaction will hinge on Iran's next steps. "Much depends on how Iran responds in the coming hours and days," said Saul Kavonic, energy analyst at MST Marquee. He warned that Tehran could strike U.S. interests or disrupt oil flows through the Strait of Hormuz — a vital corridor for global energy trade. "This could set us on a path towards $100 oil," he added. The Strait lies between Iran and Oman and is the main export route for Gulf oil producers like Saudi Arabia, Iraq, and Kuwait. A disruption there could have sweeping consequences for inflation and global supply chains. Even before the U.S. attack, Brent crude had climbed 18 per cent since June 10, reaching $79.04 — a five-month high. A further surge could complicate central banks' efforts to tame inflation and delay expected interest rate cuts. "I think oil will open higher," said Mark Spindel of Potomac River Capital, adding that the lack of a clear endgame would weigh on investor sentiment. "We're engaged. And uncertainty will blanket the markets." Retail investor confidence may already be wobbling. Ether, the second-largest cryptocurrency, dropped 8.5 per cent on Sunday, down 13 per cent since Israel's initial strikes on Iran on June 13. Despite the tensions, Gulf stock markets appeared largely unshaken. Benchmarks in Qatar, Saudi Arabia, and Kuwait were flat or slightly up. Israel's Tel Aviv 125 index touched a record high. Still, some see a path to resolution. Jamie Cox of Harris Financial Group said the attack might force Iran into negotiations. "With this demonstration of force... they've lost all of their leverage," he said. "They'll likely hit the escape button to a peace deal." History offers some reassurance: past Middle East flareups, like the 2003 Iraq war and the 2019 Saudi oil facility attack, triggered brief equity selloffs, but markets recovered within months.
Yahoo
22-06-2025
- Business
- Yahoo
Jerome Powell Blames Trump Tariffs For Inflation—Analyst Claps Back, Says Fed Is 'Overplaying' The Card
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The Federal Reserve bumped its median forecast for core inflation, which has left analysts divided as some believe that the central bank is overplaying the inflation story, while others say the impact of inflation cannot be overstated. What Happened: Despite acknowledging that inflation data was 'encouraging,' Jerome Powell noted during his press conference on Wednesday that the inflation median forecast has risen from 2.5% forecast in December, 2.8% in March, to 3.1% now. 'That's due to the effects of the tariffs.' Jeffrey Buchbinder, the chief equity strategist, and Jeffrey Roach, the chief economist at LPL Financial, said in their note that 'Inflation's importance to financial markets cannot be overstated.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — They explained, 'Higher inflation can constrain economic growth, tighten financial conditions, drive interest rates higher, and even restrain stock valuations,' adding that it also 'dampens the present value of future earnings and, historically, correlates with lower stock valuations.' However, Jamie Cox, the managing partner at Harris Financial Group, said, 'The Fed continues to overplay the inflation story and isn't paying attention to burgeoning demand weakness.' 'Concerns from the Fed around deteriorating economic conditions and rising inflation remain roughly balanced and potentially keeping Fed policy changes in the abyss for the foreseeable future,' said Charlie Ripley, senior investment strategist for Allianz Investment Management. Northlight Asset Management CIO, Chris Zaccarelli, on the other hand, explained that the Fed was waiting to see if tariffs increase inflation or the jobs market starts to falter, and whichever part of their dual mandate is impacted first will likely guide whichever direction they take, 'although the bias is still toward cutting rates (or at least keeping rates unchanged; not raising rates).' Meanwhile, Eric Teal, CIO at Commercia Bank, said that 'The economy is less rate sensitive, and we believe a significant amount of easing would be required to impact consumer behavior.'Why It Matters: Craig Shapiro, a macro strategist at Bear Traps Report, said in an X post after the conference that 'Powell wasn't as dovish as I would have thought.' He was skeptical of even two rate cuts by the end of the year, saying, 'Frankly it's not even clear to me that he (Powell)is a 2 cuts guy for 2025.'Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Photo courtesy: Domenico Fornas / This article Jerome Powell Blames Trump Tariffs For Inflation—Analyst Claps Back, Says Fed Is 'Overplaying' The Card originally appeared on
USA Today
22-06-2025
- Business
- USA Today
Investors react to US attack on Iran nuclear sites
President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: Mark Spindel, CIO, Potomac River Capital, Washington, DC: "I think the markets are going to be initially alarmed and I think oil will open higher. We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next? I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil. "There's plenty of time to deliberate before markets open on Sunday. I'm making arrangements to talk to a few people tomorrow. We'll get an early indication when the dollar opens for trading in New Zealand. This was such a bold action, though, and it's such a big contrast to the comments about negotiating for the next two weeks." Jamie Cox, Managing Partner, Harris Financial Group, Richmond, Virginia: 'Oil is sure to spike on this initial news but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." Mark Malek, Chief Investment Officer, Siebert Investment Officer, Siebert Financial, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." Jack Ablin, Chief Investment Officer of Cresset Capital, Chicago: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well." (Reporting by Saeed Azhar, Suzanne McGee. Compiled by Peter Henderson and Vidya Ranganathan)
Yahoo
22-06-2025
- Business
- Yahoo
Investors react to US attack on Iran nuclear sites
(Reuters) -U.S. President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: MARK SPINDEL, CIO, POTOMAC RIVER CAPITAL, WASHINGTON DC: "I think the markets are going to be initially alarmed and I think oil will open higher. We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next? I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil. "There's plenty of time to deliberate before markets open on Sunday. I'm making arrangements to talk to a few people tomorrow. We'll get an early indication when the dollar opens for trading in New Zealand. This was such a bold action, though, and it's such a big contrast to the comments about negotiating for the next two weeks." JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA: 'Oil is sure to spike on this initial news, but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." JACK ABLIN, CHIEF INVESTMENT OFFICER OF CRESSET CAPITAL, CHICAGO: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well."
Yahoo
22-06-2025
- Business
- Yahoo
Investors react to US attack on Iran nuclear sites
(Reuters) -U.S. President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA: 'Oil is sure to spike on this initial news, but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." JACK ABLIN, CHIEF INVESTMENT OFFICER OF CRESSET CAPITAL: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well." (Compiled by the Global Finance & Markets Breaking News team)
