On Saturday, President Trump had the U.S. military launch a series of coordinated bombings against three nuclear facilities in Iran. With this major escalation, Iran’s government is now deciding how to respond, and they have already issued a warning of “dangerous consequences.” Greg McBride, director of brokerage at Allendale, Inc., said one word can describe what this means for the markets: volatility.
The immediate response from Iran’s government was to vote to close the Strait of Hormuz, even though they don’t technically own it. Regardless, McBride said this would have an extreme effect on oil prices.
However, McBride it’s not clear how long the closure would last if it does end up happening, as it would cause problems for China, which is one of Iran’s biggest allies.
Even if the closure happens and it is just for a short while, McBride said we are already seeing a ton of volatility with oil prices.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
