The financial markets experienced turbulence at the start of trading on Monday (June 23, 2025) following the United States’ attack on Iran’s nuclear site over the past weekend.
Gold prices (XAUUSD) have surged more than $26 or 260 pips, reaching approximately $3,394 per troy ounce as trading commenced today. Meanwhile, oil prices jumped by $3.72, climbing to $77.71 per troy ounce.
Recommended
Recommended
Recommended
Recommended
In the currency market, despite the ongoing conflict between the United States and Iran, the US dollar remained strong. The EURUSD and GBPUSD fell by 701 points (70.1 pips) and 54 pips respectively, dropping to 1.14514 and 1.33938. On the other hand, the USDJPY soared 58 pips to reach 146.651—a peak not seen in the last two months.
The assault launched by the United States came as quite a shock, especially since President Donald Trump had stated last Thursday that he would announce a decision on whether to strike Iran within two weeks.
Approximately 48 hours after that statement, the US initiated Operation Midnight Hammer against Iran. This military operation involved 125 combat aircraft, including seven B-2 stealth bombers, targeting Iranian nuclear facilities in three locations: Fordo, Natanz, and Isfahan.
During a press conference post-attack, Trump hailed the military operation as a spectacular success that effectively destroyed Iran’s uranium enrichment facilities. He emphasized that Iran must now choose the path of peace, or face even larger and easier future strikes.
However, Iran was undeterred. Foreign Minister Abbas Araghchi issued a strong response, asserting that they possess all options to defend their sovereignty. He mentioned engaging in consultations with their strategic partner, Russia, and planning to discuss the US attack with President Vladimir Putin.
The potential involvement of Russia should not be underestimated. Former Russian President Dmitry Medvedev took to social media to express that Trump’s actions are counterproductive to the desired outcomes. He noted that Iran is likely to bolster its ambitions to develop nuclear weapons, with several countries ready to supply nuclear warheads to Iran.
The escalation of conflict in the Middle East has considerably impacted the financial markets, particularly as tensions rise with Trump’s threats of further strikes and Iran’s intentions to retaliate.
Gold, regarded as a safe-haven asset, has seen increased demand from investors, as has the US dollar. Conversely, there are significant risks that oil supplies could be disrupted, especially if Iran decides to block the Strait of Hormuz, a key distribution route. About 20% of the world’s oil supply transits through the narrow waters between Iran and Oman.
Such concerns have driven oil prices to a five-month high at the start of today’s trading. Rising oil prices could lead to increased inflation in Western countries, posing significant risks to economic stability. This situation has negatively impacted market sentiment, resulting in a decline in stock indices.
