American stock markets on edge as US-Iran tensions escalate

American stock markets on edge as US-Iran tensions escalate

Investors are bracing for a sharp decline in stock markets on Monday, as US measures against Iran could lead to retaliation. The situation in the Middle East has become a key influencing factor for markets, overshadowing the US economic data set to be released this week, Reuters reports.

Analysts at Interactive Brokers are convinced that stocks will react negatively to these events. So far, geopolitical turmoil has primarily affected oil prices, while stock indices have remained relatively stable, according to Reuters.

However, securities investors are concerned that rising oil prices could spark inflation in the US and disrupt the Federal Reserve's plans to lower interest rates. The latest estimates by policymakers indicate a slower pace of expected monetary easing than previously anticipated.

Along with concerns about tensions in the Middle East, this outlook is prompting market participants to turn to safer assets, such as the dollar and Treasury bonds.

Elena Berseneva MarketCheese
Brent sell
Period: 19.12.2025 Expectation: 200 pips
Brent crude to remain within $62.5–$65 range
Yesterday at 10:55 AM 25
Period: 12.12.2025 Expectation: 1625 pips
GBPUSD correction looms as Fed easing bets grow
Yesterday at 09:48 AM 22
Period: 28.02.2026 Expectation: 7000 pips
USDJPY poised to extend its decline
Yesterday at 08:49 AM 13
Period: 31.03.2026 Expectation: 140 pips
Investing in Brent crude with $75.5 in sight
Yesterday at 08:49 AM 17
Period: 12.12.2025 Expectation: 935 pips
AUDCAD aims for new highs on strong fundamentals
Yesterday at 08:11 AM 13
Period: 11.12.2025 Expectation: 450 pips
Buying natural gas on way down before next rally
04 December 2025 56
Go to forecasts