Asian stocks are declining amid anticipation of Iran's response to the US bombing

US supplies have dropped and oil prices rose in Asian trade on Monday after the United States targeted core sites in Iran over the weekend. The S&P 500 index decades fell 0.3%, and the Asian stock index has dropped to the lowest level since the beginning of June. Brent raised by 2% after jumping to 5.7% earlier. The dollar also rose against the euro and most of the major currencies, while US Treasury revenue recorded a slight increase. World markets have reduced most of its early movements, as investors are waiting for Iran’s response after promised to take revenge, while Israel showed no indication of the attacks. Oil remains the main focus, especially as any disruption of the navigation movement in the ‘street of hormuz’, the important artery for the transport of crude oil and natural gas worldwide, increases the possibility of a jump in energy prices. “This kind of blur quickly turned to the new normal situation in the markets, so I expect to see a relative calm unless the tension continues to escalate, which is clearly possible,” said Josh Gilbert, a market analyst at Etoro in Sydney. He added: “Even without immediate consequences, the mixing of oil prices and the revival of fading will be sufficient to combat the appetite for risk.” The reaction in the markets has generally been limited since the first Israeli attack this month. Despite the decline over the past two weeks, the S&B 500 index remains only 3% of its standard peak recorded in February. The dollar has risen by more than 1% as it affected its lowest level in three years earlier this month. Warnings about Iranian revenge and security complications in the market, but the continuation of this cohesion remains dependent on Iran’s next movement, according to some market observers. “It is very likely that Iran will somehow respond to the United States,” says Ben Zala, a prominent lecturer in international relations at Monash University in Melbourne. He added: “The market will be very sensitive to any military developments in the region, either in equities, bonds or currencies, because we simply do not know how this situation will develop.” Iran promised “serious consequences” for the US bombing and said it retained all options to defend the sovereignty. On the other hand, Israel continued its attacks and aimed at military sites in Tehran and Westerniran. SMBC Nikko Securities, in a memo: “If the vengeance cycle persists, the growing US financial expenditure can lead to high income of treasury bonds and US share prices.” He added that “US shares revived during the Iraq war in 2003 and the Gulf War in 1991, when the impact of major war spending began to appear, or that it was expected to appear.” The negative aspect is limited because some market participants are prepared for the possibility of the escalation of the conflict. The MSCI index for all countries of the world has fallen 1.5% since Israel’s attack on Iran on June 13. The fund managers have also reduced their stake in shares, share prices are no longer in the case of excessive purchase, and the demand for hedging instruments has increased, increasing the appearance of a sharp sale wave at this stage. At the same time, the bonuses expanded on the effects of Asian corporate companies that were caught in the highest rate in dollars outside Japan in the highest rate. In the stock market, the shares of ship companies such as “Ninjo Marin” and “Nanjing Tanker” increased due to expectations of the high ship prices to US air strikes. The shares of Asian defense companies also rose, while the shares of airlines were affected by high oil prices. Taiwan’s shares for the semiconductor industry have declined after the Wall Street Journal reported that the US Department of Trade official informed the senior Chip companies that it wanted to withdraw the exemptions that enable it to reach US technology in China. The shares of “Samsung Electronics” and “Sk Hynix” also decreased. The eyes are on its way to Europe’s data elsewhere, said Mary Dali, head of the Federal Reserve branch in San Francisco, on Sunday that the current monetary policy position “is taken into account in a good place” that the risk of federalism at employment and price stability is almost balanced. And she saw that the reduction of interest in the fall could occur, that is, what Governor Christopher Wald said on Friday that he would expect a reduction in July. Traders will follow up later Monday on the economic activity data in Europe and the United States, in an attempt to determine whether the US trade war industrial production brought to the fore before the deadline for customs tariffs on July 9. The president of the European Central Bank, Christine Lagarde, is also scheduled to speak.