Middle East situation escalates, markets may face huge shocks next week!
Recently, the powder keg of the Middle East has been ignited again, with the conflict between Israel and Iran continuing to escalate! The Israeli military has bombed Iranian energy facilities, and Iran has retaliated strongly, even threatening to blockade the Strait of Hormuz—the lifeline for nearly 1/3 of the world's oil transport. If a blockade occurs, oil prices will inevitably soar, and the financial markets will face shockwaves.
Looking back at history, geopolitical conflicts often trigger market turmoil:
• In 2022, when Russia and Ukraine went to war, the A-share market plunged 1.62% in a single day.
• In October 2024, Iran launched missile attacks on Israel, causing A-shares to drop by about 1%.
• In June 2025, the Israeli military bombed Iranian nuclear facilities, resulting in over 4,500 A-shares falling.
Market impact predictions for next week:
• Stock market: Risk aversion sentiment may rise, with gold, military, and oil & gas sectors likely to be favored, while technology and consumer sectors may come under pressure.
• Crude oil: If the situation worsens, oil prices may challenge the $100 mark.
• Gold: Driven by safe-haven demand, gold prices may continue to strengthen.
Operational advice:
Stay alert to changes in the situation, control your positions, prioritize allocations in safe-haven assets, and avoid blindly bottom-fishing! During periods of market turbulence, stability is paramount!
