Wall Street’s Positive Reaction to Iranian Bombings Suggests Oil Market Less Relevant to Stock Prices.
The recent U.S. bombings in Iran have sparked a positive reaction on Wall Street, with oil prices and stock markets taking a hit. CNBC’s Jim Cramer said the oil-rich Mideast state is “not as relevant” to the stock market as it used to be. The S&P 500 pushed higher after the market opened, despite crude contracts falling modestly.
The attack on Iranian nuclear facilities last weekend has led to a flurry of headlines for individual companies, including strong earnings from Kroger and upgrades from Melius Research. Energy traders are looking for an off-ramp from the conflict, with some viewing the attack as a sign that tensions are easing. However, in a worst-case scenario, Iran could close the Strait of Hormuz, which accounts for 20% of global crude consumption.
President Donald Trump said oil prices should be kept low, stating it would not “play into the hands of the enemy.” Jim Cramer attributed the market’s measured reaction to changes in the global energy market, with increased U.S. oil production making substantial supply shocks unlikely.
Source: https://www.cnbc.com/2025/06/23/why-cramer-thinks-wall-street-is-actually-going-higher-after-the-us-bombed-iran.html