Despite initial market volatility following US airstrikes on Iranian nuclear facilities, a significant risk-off reaction was avoided. Stocks recovered, and oil prices pared earlier losses after Iran's limited retaliatory strikes, viewed as a face-saving measure. While some analysts expressed relief at the de-escalation, concerns remain about potential further escalation given President Trump's comments and the broader geopolitical uncertainty. The situation's rapid evolution keeps investors on high alert regarding the economic implications, particularly for global oil supplies.

Prepared by Christopher Adams and reviewed by editorial team.