American B-2 Stealth bombers successfully targeted three key Iranian nuclear facilities – Fordow, Natanz, and Isfahan using bunker-busting GBU-57A/B bombs weighing 30,000 pounds each. This groundbreaking attack on Iranian nuclear facilities represents the first direct American air strike on strategic targets in Iran since the 1979 revolution and creates new investment opportunities in defense industry and energy markets.
How the Iran Attack Changed Oil Prices and Energy Markets
Energy markets reacted to the weekend strikes on Iranian nuclear facilities with a sharp surge Sunday evening – US crude oil futures rose 2.7% to $75.80 per barrel from Friday’s $73.84, while Brent crude futures reached $78.88 per barrel with a 2.44% increase from Friday’s $77.01. Energy analysts expect further oil price growth of $3-5 per barrel and warn of prices approaching $85-90 in case of further conflict escalation.
American equity futures responded with declines – Dow futures fell 175 points (0.4%), S&P 500 futures dropped 0.4%, and Nasdaq futures declined 0.5%. Following the initial Israeli attacks on June 13, the Dow Jones fell dramatically by 769.83 points (1.79%).
Which Stocks and Sectors Benefit Most from the Conflict
Defense Industry: Record Gains for Military Contractors
American defense companies and military technology manufacturers recorded significant gains after the attack on Iranian nuclear facilities:
- Lockheed Martin rose 2.77% to $469.27
- RTX Corporation and Northrop Grumman each gained more than 4%
- Boeing and L3Harris Technologies also increased over 3%
Israeli defense companies are achieving record performance. Elbit Systems with revenues of $4.96 billion moved from 29th to 24th place in the global ranking. Israel Aerospace Industries reported record profits of $122 million in Q3 (60% increase) with orders worth $25 billion.
Energy Sector Benefits from Rising Oil Prices
Oil companies and energy firms are benefiting from rising prices following the attack on Iran:
- Exxon added 2% during Friday
- Chevron, ConocoPhillips, and BP expect significant benefits
- Refineries like Valero, Phillips 66, and Marathon Petroleum may benefit from higher margins
Gold and Precious Metals Investment During Crisis
Gold as a safe investment rose 1.3% to $3,428.10 per ounce, approaching the record high of $3,500.05 from April. Since the conflict began on June 13, gold prices gained approximately 4% during the week. Silver investments declined slightly by 0.3% to $36.27 per ounce but gained 0.9% for the week.
Sectors Damaged by Instability
Travel-related stocks suffered significantly:
- Expedia and Booking Holdings each lost around 2%
- Airbnb also declined 2%
- Hotel chains Hilton, InterContinental, and Marriott all fell more than 1%
Airlines face uncertainty regarding international travel, reflected in their stock declines.
Strait of Hormuz: Greatest Risk for Global Markets
More than 25% of maritime oil trade passed through the strategic Strait of Hormuz during 2024. A prominent advisor to Iran’s supreme leader called for missile attacks on American naval vessels and closure of this critical shipping route for global energy markets.
Experts warn that if the escalating conflict affects this strategic route and significantly reduces global oil supplies, prices could rise to $120 per barrel.
Inflation Pressures and Monetary Policy
The American economy faces unwanted prospects of reigniting inflation following the launch of attacks on Iranian nuclear facilities. High oil and gas prices are almost certain according to economic experts.
Rising inflation could weaken consumer confidence and reduce the likelihood of interest rate cuts in the near future, creating a complex macroeconomic environment.
Strategic Investment Decision-Making
Jamie Cox from Harris Financial Group suggests that Iran, stripped of nuclear leverage, may seek a peace agreement, which could stabilize oil prices after an initial surge.
Current events create a complex investment environment with clear opportunities in energy and defense sectors, while stability-dependent sectors face challenges. Investors should monitor diplomatic developments and prepare for volatility in the coming weeks.
