Stocks were little changed on Monday despite the United States joining Israel’s military campaign against Iran over the weekend with strikes on three nuclear facilities, as oil prices showed a relatively muted reaction.
The Dow Jones Industrial Average slipped 45 points, or 0.1%. The S&P 500 was trading flat, while the Nasdaq Composite fell 0.2%.
The US launched strikes on Saturday targeting nuclear sites in Fordo, Isfahan, and Natanz.
The move caught investors off guard, especially after President Donald Trump said Friday he would decide “within the next two weeks” whether to take military action against Iran, according to the White House.
Oil prices had already risen in recent weeks amid escalating Middle East tensions.
US crude futures briefly touched levels not seen since January in Sunday night trading before paring gains.
West Texas Intermediate (WTI) crude was last down 0.2% at $73.86 per barrel on Monday.
In a Saturday evening address following the strikes, Trump said, “there will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days.”
Markets are now watching for Iran’s response, with concerns that any retaliation could further destabilize the region.
Possible actions include targeting US personnel in nearby military bases or attempting to close the Strait of Hormuz—a critical chokepoint for global oil flows.
A prolonged disruption could push oil prices above $100 per barrel.
An expanded conflict in the Middle East adds to the list of risks facing the stock market and broader economy, which are already navigating the effects of President Trump’s aggressive reshaping of global trade policy this year.
Iran-Israel conflict
The Israel-Iran conflict entered its 11th day on Monday, June 23, as Israel’s military confirmed strikes on surface-to-surface missile launch sites in western Iran.
The latest round of hostilities follows a major escalation on June 13, when Israel launched large-scale attacks targeting Iranian missile infrastructure, nuclear facilities, and senior military officials.
Aerial assaults continued into Monday and intensified after the United States conducted bunker-buster bomb strikes over the weekend on three of Iran’s nuclear sites.
Following the US strikes, President Donald Trump warned, “there will be either peace, or there will be tragedy for Iran far greater than we have witnessed” since Israel began targeting the country’s nuclear facilities.
Iran condemned the attacks as “outrageous,” accusing the US and Israel of derailing diplomatic efforts surrounding its nuclear program.
Both countries carried out additional strikes over the weekend, further escalating tensions.
Iran’s Foreign Minister Abbas Araghchi is traveling to Russia on Monday to discuss the conflict with its ally.
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