With US strikes hitting Tehran and threats swirling around the Strait of Hormuz, investors are weighing geopolitics against portfolio stability and the potential for soaring oil prices.

Strike One: Oil Spikes and Stocks Sputter

The US launched precision strikes on three Iranian nuclear facilities late June 21, prompting a knee‑jerk lift in oil. Brent jumped more than 2% to around $78.50/barrel, with WTI close behind at ~$75.30. Energy markets reacted swiftly, but equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term took a cautious hit—S&P, Dow, and Nasdaq futures dipped between 0.3–0.4%.

Asia wasn’t immune. Markets from Tokyo to Sydney shed modest gains as the risk premium climbed. Japan even saw its defense sector rallying amid renewed geopolitical concern.

The Hormuz Card: Oil Drama or Serious Threat?

Here’s where things get spicy: Iran’s parliament backed a plan to close the Strait of Hormuz—a chokepoint for ~20% of the world’s daily oil movements. But approvals still require the green light from the Supreme National Security Council. If executed, the impact would be seismic: oil would soar, and where it ended up would be anyone’s guess. That spike would cascade through refinery costs, insurance premiums, and consumer prices.

BREAKING: Iranian parliament has just voted to close the Strait of Hormuz.

- 20% of global oil passes through the Strait

HERE’s what to expect if successful:

- Oil Prices could spike by 30–50%+ almost immediately

- Global Inflation likely Rises

- U.S. Gas Prices likely… pic.twitter.com/WC4dmeagRE

— Brian Krassenstein (@krassenstein) June 22, 2025

Yet, analysts are skeptical about whether Tehran would actually shut the passage. This naval route is vital for Iran’s own oil exports, especially to China—a move to close it would be economic self‑sabotage. The US and allies have naval forces deployed nearby, and Iran lacks legal cover to block the strait outright.

Market Outlook: Fear vs. Fundamentals

Most analysts expect this to be a short‑lived flare‑up rather than a protracted war. “Not crazy” oil forecasts from veteran strategists suggest prices will retreat once the initial panic fades. Defense stocks have popped, but broader markets are trading with guarded optimism.

Brent Oil Price: pic.twitter.com/VPB3Im5jaG

— Michael McDonough (@M_McDonough) June 22, 2025

Still, market sentiment carries a caution flag. Goldman warns current oil prices include a hefty $12/barrel geopolitical risk premium, with the potential to hit $90 even if the strait remains open. Oxford Economics points out that a serious blockade could shave 0.8 percentage points off global GDP.

Plus500's Founder Has An Outlandish Piece of Advice

While the Israeli broker is expanding its presence in the US and offers extensive oil and other energy contracts in the country, its founder, Alon Gonen, has become something of an internet personality with his market moving piece of advice.

"The enemy of my enemy is my friend," he said in a video posted on LinkedIn. "The regime opponents in Iran are enemies of the Iranian regime. That means they are our friends."

"Israel should bomb the prisons in Iran — in a way that allows the prisoners to escape. This would create a wave of euphoria among the Persian people, something that could truly bring down the Persian regime."

Tech, Trade & Trendspotting

In tech-heavy sectors, firms tied to oil logistics, shipping insurance, and semiconductor supply chains could feel ripple effects. Elevated crude prices mean higher transportation costs—possibly pressuring margins in e‑commerce and manufacturing sectors. Similarly, alternative energy firms or pipelines bypassing Hormuz might draw investor attention as geopolitical insurance plays take hold.

That was quick:

Within 1 hour of oil markets opening, the surge in prices has been almost completely erased.

That's right, oil prices are now up just +0.5% after the US bombed Iran.

To all the people calling for World War 3:

The market respectfully disagrees. pic.twitter.com/hiUkUzD7bT

— The Kobeissi Letter (@KobeissiLetter) June 22, 2025

What Traders Should Watch

• Iran’s next move: Will Tehran escalate or hold? A missile or cyber strike could reignite volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.
• Hormuz traffic: So far, commercial shipping keeps flowing—watch satellite data and tanker insurance premiums.
• U.S. response: Additional military deployments or sanctions could tone it down, or pour gas on the fire.
• Seasonal demand: Summer fuel consumption in the northern hemisphere could exacerbate price swings.

Brace, Don’t Panic?

Oil is in a volatility tailspin—but not a free-fall. High prices suit defense suppliers and energy traders buying coverage. But equities, especially in tech and manufacturing, are treading water amid uncertainty. The smart play for now? Don’t bet the ranch—banks and big-spenders will watch Tehran more than Trump.

For more trending news, visit our dedicated pages.