The airstrikes in the Israel and Iran are having a global impact on Wall Street

Following the Israeli airstrikes against Iran, Wall Street’s narrow focus was evident in the immediate aftermath.

As the attacks unfolded almost in real time on Thursday night, many of us were concerned about the potential for World War III.

Various sources were scrambling to assess the impact on the Dow Jones, oil prices, and interest rates.

While there may be a rationale for this short-sighted approach, it’s crucial for the investor class to remain in their lane and leave geopolitical analysis to those better equipped for it.

Despite the myopic view, Wall Street’s reaction to the conflict is worth analyzing.

By examining the short-term effects on economic indicators and interpreting their implications, one can draw broader conclusions about the Israel-Iran conflict.

The market’s initial response was mixed, with stocks initially dropping sharply before rebounding and then declining again as Iran retaliated against Tel Aviv.

Oil prices surged by about 7%, a common reaction to conflicts in the Middle East.

However, the overall impact was not as severe as expected, with the Dow closing down less than 800 points.

Amidst the uncertainty, there was a sense of nervousness among investors, but not outright panic.

It’s possible that something positive may emerge from the conflict, such as lower energy prices in the future and potential investment opportunities.

While it may seem simplistic to suggest that the conflict could have long-term benefits for the markets, life is rarely black and white.

Israel’s actions, while necessary for its own security, may also have broader positive implications for the region.

Looking ahead, it’s important to consider the potential for peace and prosperity to emerge from this turbulent situation.

President Trump’s handling of the situation has been commendable, with Israel keeping him informed and his efforts to steer Iran towards negotiations.

Ultimately, while wars are devastating, there is hope that the current conflict could pave the way for long-term peace and prosperity.

Trump kept in the loop 

President Trump here has been at his best, my Wall Street sources remind me, another reason they’re not panic-selling. Israel kept him in the loop.

He alerted the world that the attacks would happen Thursday.

He then began distancing himself and our country from the direct conflict, while prodding Iran to get back to the negotiating table and end its nukes program.

Who knows, they might finally listen. 

Wall Street is always looking for “black swan” events — stuff most people don’t see that could lead to catastrophic market results. Wars are terrible. It would be great if Iran chose peace, but maybe eliminating it as a threat to Israel and a lot more is a black swan that produces some long-term peace and prosperity. 

Let’s hope so and pray for the peace dividend it should deliver.