Squawk on the Street SOTS 2nd Hour: Israel-Iran Conflict: Impact for Stocks, Bonds, Energy, and the Fed 6/13/25
Jun 13, 2025
H.R. McMaster, former National Security Advisor and senior fellow at the Hoover Institution, shares insights on the escalating Israel-Iran conflict and its potential fallout. He predicts significant geopolitical shifts, emphasizing how military actions could impact global energy markets. The discussion also touches on the implications for U.S. foreign policy and inflation. Experts weigh in on market reactions, noting a surge in defense stocks and the fluctuating dynamics of safe havens like gold against the backdrop of rising oil prices.
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U.S. Treasuries Losing Safe Haven Status
- The U.S. Treasury market is losing its status as a guaranteed safe haven due to declining global confidence.
- Investors are gradually diversifying away from U.S. sovereign debt, shifting partly towards gold and other assets.
Oil Prices Spike Amid Conflict
- Oil prices spiked rapidly after Israel's strike on Iran, mirroring reactions seen during the Ukraine invasion.
- Market fears over spare oil capacity in the Gulf region are driving the aggressive price surge.
Iran's Diminished Retaliation Capability
- Iran's power to retaliate against Israel and U.S. is diminished by Israel's prior military actions and improved regional defenses.
- Iran may still attack via proxies using missiles, cyberattacks, or terrorism globally.
