## THE ISRAEL - IRAN CONFLICT STOCK MARKET: UNEXPECTED OPTIMISTIC SIGNALS, GOLD ALSO UNEXPECTEDLY DROPS AT THE BEGINNING OF THE WEEK
Although the headlines continuously warn about the risk of escalation and prolongation of the Israel-Iran conflict, the stock market is telling a completely different story.
The stock index unexpectedly increased, oil prices only rose slightly by 0.5%, while gold prices fell by 0.5%.
If the market truly feared a prolonged war, oil prices would have exceeded the threshold of 100 USD/barrel. However, currently, oil prices are still 10% lower than last week's peak.
These signals indicate that the market is betting on the possibility of reaching a peace agreement in the near future.
The underlying message from the market seems to be optimism, in contrast to concerns about a widespread war.
