U.S. Stocks and Energy Markets Remain Calm Despite the U.S. Joining Israel's War On Iran

Barry Adams
23 Jun, 2025
New York City

Wall Street indexes wavered around the flatline on Monday as investors assessed the tame oil market's response to the U.S. strike on Iran's nuclear sites. 

The S&P 500 index edged up a fraction, and the tech-heavy Nasdaq Composite edged down a fraction, and crude oil inched higher by 2% in New York after rising as much as 6% in London trading. 

U.S. officials confirmed three strikes on Iran's nuclear facilities and joined Israel's war on Iran. 

However, military experts in the Middle East voiced skepticism about the effectiveness of such a strike and its impact on Iran's government. 

Iran vowed to respond, and the country's parliament approved the blocking of the Strait of Hormuz, which could play a role in disrupting global energy supply. 

Despite rising tensions in the Middle East, oil markets remained relatively calm, and crude oil futures struggled to rise to a six-month high. 

European markets edged down 0.6%, and markets in Asia closed mixed as traders awaited Iran's response to the latest U.S. attacks.

Iran's ability to strike back is severely hampered as its key military ally, Russia, is struggling with its own war in Ukraine. 

Moreover, China is unwilling to be drawn into an open conflict with the U.S. and Israel and provide direct support to Iran because the second-largest economy is dependent upon exports to the U.S. markets and the U.S. dollar payment system.

The combined military power of the U.S. and Israel far outweighs Iran's military capabilities. 

Despite the U.S. and Israel's military superiority, the region's experts point to NATO's failed war in Afghanistan, which led to the replacement of one Taliban government with another Taliban government after two decades of war and more than $2 trillion of spending.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.3% to 5,984.11, the Nasdaq Composite edged up 0.1% to 19,470.54, and the Russell 2000 index declined 0.5% to 2,098.65.

The yield on 2-year Treasury notes edged lower to 3.90%, 10-year Treasury notes decreased to 4.34%, and 30-year Treasury bonds declined to 4.87%.

WTI crude oil decreased $0.48 to $73.58 a barrel, and natural gas prices edged lower by $0.14 to $3.75 a thermal unit.

Gold increased by $9.36 to $3,378.34 an ounce, and silver edged up by $0.17 to $36.17.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.56 to 99.27 and traded at the lowest level since April 2022.

 

U.S. Stock Movers 

Defense stocks advanced following the U.S. attacks on Iran's nuclear sites. 

L3Harris Technologies Inc. added 1% to $252.09, Northrop Grumman Corp. advanced 1.1% to $503.14, RTX Corp. jumped 1.9% to $149.54, and Lockheed Martin Corp. edged up 0.7% to $473.70. 

Energy complex stocks traded sideways, and investors focused on ample global supply of crude oil amid Iran's threats of closing the Strait of Hormuz. 

Exxon Mobil Corp. gained 1.5% to $116.39, Chevron Corp. increased 1.3% to $151.50, ConocoPhillips advanced 1.4% to $96.0, and EOG Resources added 2% to $127.88.