U.S. stock futures showed little change Monday after the U.S. joined Israel in striking Iranian nuclear sites over the weekend. Oil prices were slightly higher as traders monitored Iran’s response to the attacks. The muted market response came despite fears of a larger conflict erupting in the Middle East.
Investors are closely monitoring developments to assess the potential impact on financial markets.
Tel Aviv 125 index: Israel's stock market hits record high; know the reason here#Israel #StockMarket https://t.co/HhiulRbADi
— ET NOW (@ETNOWlive) June 23, 2025
U.S. officials stated that the conflict could either lead to peace or bring greater tragedies for Iran than have been seen before. Iran condemned the strikes as “outrageous” and accused the U.S. and Israel of hindering diplomatic efforts over its nuclear program.
Of note:
Israel's stock market makes a new all time high this weekend.#TA125 pic.twitter.com/MTAb6Yg8lg— Sven Henrich (@NorthmanTrader) June 22, 2025
Oil prices gave up earlier gains on Monday as traders seemed to bet that the conflict would not severely disrupt oil supply. While Iran has hinted at various potential responses, including possibly closing critical shipping routes, analysts view such a move as unlikely.
Middle East tension impacts U.S. stocks
MUTED OIL REACTION SUGGESTS HORMUZ BLOCKADE UNLIKELY
Oil prices rose only slightly after U.S. strikes on Iranian nuclear sites, reflecting market belief that a Strait of Hormuz blockade is unlikely.
Brent and WTI crude rose about 1%, with analysts calling the limited reaction…
— *Walter Bloomberg (@DeItaone) June 23, 2025
In corporate news, major U.S. health insurers announced plans to streamline the prior authorization process for approving some medical claims. The initiative aims to reduce the administrative burden on providers and speed up patient care. Changes include reducing the number of claims requiring prior authorization by next year and implementing a common standard for electronic authorization requests by 2027.
The move will impact major insurers, such as Blue Cross Blue Shield. Meanwhile, Antonio Filosa, a 51-year-old Italian national, has taken the helm at a major automaker after visiting the company’s plants in the U.S., Canada, and Europe for weeks. Insiders revealed that Filosa is well-versed in the business but faces significant challenges, including repairing strained relationships with employees and dealers.
As the week begins, investors will be closely monitoring the developing situation in the Middle East and its potential impact on the stock market and the broader economy. The recent escalation adds to existing uncertainties following two consecutive weeks of market losses.
