The world is waiting for Iran's response to the US strike, investors are expected to flock to safe havens.
Traders predict that investors will seek safe havens after the United States attacks three major nuclear facilities in Iran, causing the stock market to fall, oil prices to soar, and the dollar to strengthen. Market observers say that concerns about escalating war may weigh on stock prices, while bonds may receive a boost. They point out that if Iran blocks key oil and gas shipping lanes, such as the Strait of Hormuz, or attacks U.S. forces in the Middle East, market volatility will be even greater. "The initial reaction will be a rush to safety assets, so the stock market may weaken," said Neil Birrel, Chief Investment Officer at Premier Miton Investors. "Given the current levels of the stock market, they will definitely face increased risks, there is no doubt about that."
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