Recent US strikes on Iranian nuclear sites have resulted in minimal reactions in global markets. Investors are confident that the situation will not escalate beyond the region.
Minimal Impact on Markets
Despite the strikes, the MSCI World Index only dipped 0.12%. Investors perceive the situation as non-threatening. The Japanese yen fell 0.64% against the dollar, while gold decreased by 0.23%.
Possible Iranian Response
According to Dan Ives from Wedbush, the attack on Iran was seen as a way to reduce radiation threats. 'The markets view the attack as a relief now that the nuclear threat is gone,' he stated. Peter Boockvar from Bleakley Financial Group remarked that the outcome depends on Iran's response. He does not believe that Iran will disrupt oil supplies.
Iran's Dependence on China
Iran is heavily reliant on China, which has no interest in disrupted oil supplies. Vandana Hari from Vanda Insights pointed out that the chances of Iran closing the Strait of Hormuz are 'absolutely minimalistic.' Any disruptions could provoke backlash from China and neighboring countries.
For now, markets remain calm, and thus far, the conflict with Iran does not appear to have an adverse economic impact, unless something more serious occurs.
