Markets Stabilize After U.S. Delays Decision on Iran Intervention

Global financial markets steadied on June 20 following the White House’s announcement of a deliberate pause in deciding whether to engage militarily in the Israel–Iran conflict. Brent crude prices briefly eased by 2.4%, though weekly gains remained intact. Oil’s volatility has been a key driver behind broader market swings. In Asia, equities recovered modestly after earlier steep losses; European stock futures also bounced. Meanwhile, the U.S. dollar saw its first weekly rise in over a month, driven by its safe-haven status amid war-related uncertainty. Central banks across the U.S., Europe, Japan, Switzerland, and Norway have signaled cautious stances, with a few initiating rate adjustments and others hold on tightening amid inflation and geopolitical risks. In Washington, President Trump gave himself a two-week window to evaluate military options, opening breathing room for diplomacy. European leaders accelerated talks aimed at reviving nuclear diplomacy with Tehran, but Iran remains unyielding in its refusal to negotiate under fire. Investors are watching developments in energy, bonds, currency markets, and inflation data, especially as Federal Reserve Chair Powell prepares for congressional testimony. With upcoming U.S. jobs data, inflation reads, and the NATO summit in The Hague, economic outlook now hinges on geopolitical developments. Analysts caution that any sudden spike in hostilities—such as Iran retaliating against maritime traffic in the Strait of Hormuz—could trigger renewed market turbulence and supply chain disruptions.