The Iran-Israel conflict and equity markets are now in sharp focus. As direct strikes escalated in June 2025, global financial markets responded immediately.

The average return on the stocks is negative for the week and month after geopolitical conflicts. The economic risk is higher oil prices, a headwind to global growth.

Israel’s recent strikes on Iran’s nuclear facilities and the subsequent missile launches by Iran toward US bases in Qatar and Iraq have highlighted the complex dynamics of the Middle East and its impact on global oil markets.