Markets bounce as Iran strike shows little appetite for escalation
After bracing for impact, risk assets like stocks and bitcoin are surging, while oil drops.
Call it “duck and recover.”
Prices of risky investments like stocks and crypto jumped in the aftermath of what seems like a somewhat performative Iranian missile strike on a US military base in Qatar on Monday afternoon. A US official reported that there were no casualties as a result of the Monday attack.
As reports of the attack hit the tape, the markets briefly braced for impact. But once the limited scope of the barrage was understood — the Iranians took pains to say they launched the same number of missiles as the number of bombs that the US dropped — prices of stocks surged, while prices for safe bonds and crude oil dropped.
In other words, the market appears to be proceeding as if the recent spate of air strikes is done and dusted, though of course that remains to be seen.
