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cover of episode Market quickly recovering from Operation Midnight Hammer

Market quickly recovering from Operation Midnight Hammer

2025/6/23
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Saxo Market Call
AI Chapters Transcript
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This chapter analyzes the market's reaction to Operation Midnight Hammer, the bombing of Iran's nuclear facilities. Despite initial shock, markets quickly recovered, and the discussion centers on Iran's potential retaliation, particularly the threat of blocking the Strait of Hormuz and its implications for oil prices. The role of speculators and the risk premium in oil prices are also examined.
  • Operation Midnight Hammer involved B-2 bombers dropping massive bombs on Iranian nuclear facilities.
  • Initial market reaction was a knee-jerk drop followed by a quick recovery.
  • Iran's potential retaliation, specifically blocking the Strait of Hormuz, is a major concern but its likelihood is debated.
  • The current oil price includes a significant geopolitical risk premium despite no actual supply shortage.
  • Speculator activity shows short-covering, indicating limited potential for further price increases solely based on speculation.

Shownotes Transcript

Today we talk through the US "Operation Midnight Hammer" bombing of Iran's nuclear facilities and the implications from here, as well as why we have seen limited fallout for global markets thus far. As well, we discuss why the JPY is suffering a fresh pounding overnight for reasons entirely unrelated to geopolitics. This and much more on today's pod, which features Saxo Head of Commodity Strategy Ole Hansen and Saxo Global Head of Macro Strategy John J. Hardy.

 

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