Israeli Surgical Air Strikes on Iran Sends Oil Prices Sharply Higher and the Risk-On Trade to the Back Burner

Stocks fall and oil rises as Israel-Iran tension turns into action

Highlights

• Stocks fall and oil rises as Israel-Iran tension turns into action

• Gold is favored over Bitcoin as risk-off sentiment weighs in

• Inflation numbers are in line with the two Fed rate cuts outlook

• Tech companies continue to deliver strong earnings growth

Key Takeaways

• Stocks Decline as Tension Turns into Military Action in the Middle East, Again: Markets have responded rationally and predictably to the overnight Israeli air strikes on various Iranian assets — military, nuclear, and regime targets. Last October’s skirmish on steroids. Dow futures are off nearly -500 points. European markets are down -1.0% but off the lows. Asia traded lower across the board.