#FOMCMeeting The Iran/Israel conflict is once again affecting risk sentiment, while all eyes are on the Fed

ANALYSIS | 06/17/2025 10:01:05 GMT

It is difficult to summarize the general mood in the markets on Tuesday. European stocks are extending losses as we move through the European morning session, and U.S. stock market futures also point to a lower opening. Oil prices are also extending gains towards $74.50, as risk aversion takes hold once again. However, gold prices are only moderately higher. The risk of headlines from the Iran-Israel conflict is once again impacting financial markets, having taken a breather on Monday.

Stocks are down following Donald Trump's abrupt departure from the G7 to monitor events in the Middle East from the White House. This suggests that things could be about to escalate in this conflict. The French president initially said that President Trump was leaving due to a ceasefire between Iran and Israel, but that was rejected by President Trump. This has spooked financial markets on Tuesday morning.