Stocks, Oil and Bond Yields Edged Higher as Iran-Israel War Threatens Global Energy Supply Chain

Barry Adams
16 Jun, 2025
New York City

Wall Street indexes advanced on Monday despite elevated geopolitical tensions and trade policy uncertainties. 

The S&P 500 index gained 0.3%, and the tech-heavy Nasdaq Composite advanced 0.4%, and investors overlooked rising tensions between Israel and Iran. 

For the fourth consecutive day, Israel and Iran exchanged aerial attacks as both countries targeted each other's energy infrastructure.

Iran threatened to close the Strait of Hormuz, which could cut off the supply of crude oil and natural gas to global markets. 

Crude oil prices jumped as much as $77 a barrel in overnight trading but cooled down to $73 a barrel following a lull in air attacks over the last few hours.

Market sentiment was positive despite growing chaos in the Middle East, ongoing Russia's invasion into Ukraine, U.S. trade policy uncertainty, and the fading luster of U.S. safe-haven status. 

The Fed Reserve is set to announce rate decisions on Wednesday, and investors are estimating the central bank to hold rates steady amid tariff uncertainty and rising geopolitical tensions in the Middle East.

The Bank of England and the Bank of Japan are also set to announce their rate decisions. 

On the earnings front, markets anticipate results from Jabil, John Wiley & Sons, Lennar, Progressive Corp., Accenture Plc., CarMax, and Carnival Corp.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.9% to 6,028.10, the Nasdaq Composite edged up 1.0% to 19,603.71, and the Russell 2000 index advanced 1.0% to 2,121.18.

The yield on 2-year Treasury notes edged higher to 3.97%, 10-year Treasury notes increased to 4.44%, and 30-year Treasury bonds advanced to 4.93%.

WTI crude oil decreased $1.15 to $71.83 a barrel, and natural gas prices edged higher by $0.14 to $3.72 a thermal unit.

Gold decreased by $23.73 to 3,410.68 an ounce, and silver edged up by $0.07 to $36.39.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.38 to 97.81 and traded at the lowest level since April 2022.

 

U.S. Stock Movers

On Monday's trading, tech stocks led gainers on Wall Street amid speculation that leading tech companies are likely beneficiaries of the increased military spending. 

Tesla Inc. edged up 2% to $331.56, Meta Platforms inched higher 0.6% to $687.14, Alphabet advanced 0.6% to $175.66, and Microsoft Corp. declined 0.6% to $473.77.