The strategist believes that short-term shocks will not change the long-term trend of the market

Investing.com — U.S. President Donald Trump said Saturday that the U.S. military has launched a “major military operation” against Iran, with explosions reported in parts of the Middle East.

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In a video message posted on Truth Social, Trump stated, “Our goal is to defend the American people by eliminating the imminent threat posed by the Iranian regime. They are a very tough, terrifying group of bad actors.”

According to Reuters, a U.S. official confirmed that the U.S. military carried out strikes via air and sea. Iranian officials reported attacks on several facilities in southern Tehran. After Iran launched a counterattack, explosions were also heard in Jerusalem.

Earlier Saturday, Israel conducted a daytime airstrike on the Iranian capital, with smoke rising over central Tehran. Trump said that despite negotiations aimed at curbing Iran’s nuclear program, Iran continues to advance its nuclear weapons development.

Trump stated, “In the ‘Midnight Hammer’ operation last June, we destroyed the regime’s nuclear program in Fordow and Isfahan. After that attack, we warned them never to resume their malicious nuclear pursuits. We repeatedly sought an agreement, but Iran refused.”

He added that Iran is attempting to rebuild its nuclear program and develop long-range missiles capable of threatening U.S. allies and overseas troops.

Limited Market Impact

Keith Lerner, Chief Investment Officer and Chief Market Strategist at Truist Advisory Services, said that investors had already been dealing with a complex market environment prior to the recent escalation.

Lerner told Investing.com, “For investors, the disruptive potential of AI and the re-ignition of tariff uncertainties are not enough. After the U.S.-Israel joint strike on Iran at the end of this month, geopolitical tensions will intensify.”

“Historically, such events tend to have only short-term effects on the markets… That said, oil prices remain an important variable to watch closely. Overall, this background suggests increased volatility — which is typical for a midterm election year.”

Michael Brown, Senior Strategist at Pepperstone, told Investing.com that when markets reopen, crude oil prices could gap higher, and traditional safe-haven assets like gold, the yen, Swiss franc, and U.S. Treasuries are also likely to rise.

Stock markets and high-beta currencies may face pressure. However, he warned that once initial reactions subside, geopolitical shocks rarely lead to sustained trends in major asset classes.

William Jackson, Chief Emerging Markets Economist at Capital Economics, said the broader economic impact will depend on oil.

The firm stated, “Our estimates indicate that the political risk premium in oil prices has risen significantly.” They added that even if strikes remain limited, Brent crude futures could climb toward $80 per barrel.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.