Closing Bell Closing Bell Overtime: Stocks Pullback After Israel, Iran Strike Each Other 6/13/25
Jun 13, 2025
Geopolitical tensions between Israel and Iran are sending shockwaves through global markets. Rising oil prices are a direct response, impacting inflation and investor sentiment. Experts delve into the strategic significance of the Strait of Hormuz and the potential for stagflation. The discussion also touches on how these developments are influencing the housing market and builder confidence. With uncertainties looming, the Federal Reserve's interest rate strategies are up for analysis amid these escalating risks.
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US Defends Israel with Interceptors
- The U.S. is actively using missile interceptors like THAAD and Patriot batteries to help defend Israel against Iranian missile attacks.
- Israel's recent airstrikes on Iran also included a call from Netanyahu for regime change, appealing directly to the Iranian people.
Markets Price Limited Conflict
- Markets are not pricing in a full-scale war but rather a limited series of engagements with some escalation risk.
- The key factor preventing a full escalation is the absence of direct attacks on oil facilities or critical Middle East chokepoints like the Straits of Hormuz.
Oil, Tariffs Compound Stagflation Risks
- Rising oil prices combined with high tariffs increase stagflation risks and create a more challenging environment for economic growth.
- This situation complicates the Federal Reserve's ability to cut rates in the near term due to inflation concerns.