U.S. forces launched major combat operations against Iran on Saturday following escalating tensions in the Middle East. President Trump confirmed airstrikes targeting Iranian nuclear facilities, including the Fordow site, after warning Tehran against resuming its nuclear weapons program. Explosions were reported across Tehran and Jerusalem as Iran launched counterattacks.

Strategists predict only temporary market disruption despite the dramatic escalation. Keith Lerner of Truist Advisory Services noted investors were already navigating AI disruption and tariff uncertainty before the latest geopolitical flare-up. Michael Brown of Pepperstone expects crude prices to gap higher when markets reopen, with traditional havens like gold and the yen seeing gains, though major asset classes rarely show lasting moves from such shocks.

Oil prices remain the critical variable, with Capital Economics estimating the political risk premium has already risen substantially. The firm projects prices could climb toward $80 per barrel even if strikes remain limited. With the U.S. midterm elections approaching, strategists anticipate elevated volatility but believe markets will stabilize once initial reactions fade, as has been the pattern with previous geopolitical events.