Markets

Traders Rush to Options Market as Geopolitical Risks Rise

The repercussions of the escalation between Iran and Israel are beginning to reflect on global markets

The strikes carried out by Israel on Iran and the subsequent reactions affected the markets on Friday, prompting traders to rush towards hedge options, amid ongoing questions about the potential for this conflict to continue.

Tomas Varga, an analyst at the energy brokerage "PVM," stated: "The escalation between Israel and Iran, including strikes on nuclear and military targets, marks a turning point in the geopolitical landscape of the Middle East, and its repercussions are already being reflected in global markets."

He added that "the Strait of Hormuz, through which 20 million barrels of oil pass daily, is now on the brink of geopolitical danger."

Here are some ways traders are preparing themselves to face the uncertainty dominating the markets:

Gold: A traditional safe haven rising as tensions escalate

The rush towards gold, which occurred in April during tariff disruptions, is repeating but on a smaller scale as geopolitical tensions rise.

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