US President Donald Trump has disclosed he is nearing a decision on launching unprecedented military action against Iran, according to reporting from Israel’s N12 network. Trump characterized the potential operation as a “massive attack greater than anything before” and indicated Israel would participate immediately if called upon, joining within two minutes of any request.
The announcement introduces severe geopolitical risk into global markets at a time of already heightened Middle East tensions. Traders should anticipate immediate volatility across energy markets, with crude oil prices likely to spike on supply disruption fears given Iran’s strategic position along critical shipping lanes. Safe-haven assets including gold, the Swiss franc, and US Treasuries are expected to see strong buying pressure, while equity markets face downside risk particularly in sectors exposed to energy costs and Middle East operations.
Defense and aerospace stocks may see upward movement on increased military spending expectations. Currency markets should watch for dollar strength as risk-off sentiment dominates.
FXnCO Insight
Prepare for sharp moves in oil and gold while reducing exposure to risk assets until Trump’s final decision becomes clear.
Source: FXStreet