There was plenty of fear in the markets last night.
Gold rocketed to its highest level in nearly seven years. Oil exploded to $65.65.
Dow Jones’ futures were down as much as 333 points, as investors feared the worst.
All after Tehran launched more than a dozen ballistic missiles against U.S. military bases in Iraq, raising fears the two foes are moving closer to a bigger war. Fortunately, there are signs retaliations from the U.S. and Iran may stop – at least for the immediate-term.
‘All is well!’ President Trump tweeted after the missile attacks, adding, ‘So far, so good’ regarding casualties. Moments earlier, Iran’s foreign minister tweeted that Tehran had taken “& concluded proportionate measures in self-defense,” adding that Tehran did “not seek escalation” but would defend itself against further aggression, as noted by the Associated Press.
And while Iranian Supreme Leader Ayatollah Ali Khamenei vowed further retaliation, he stopped short of threatening more military action. “Last night, they were given one slap,” he said in a speech, as quoted by The Wall Street Journal. “Such military actions are not enough as far the importance of retaliation is concerned. What’s important is that their corruption-creating presence should end.”
Iraq noted 22 rockets fell, and that there were no casualties. Meanwhile, Iran said it killed 80 U.S. military personnel, and that it damaged a good deal of military equipment.
While Dow Jones’ futures have since recovered – and turned positive – the threat of war still exists. In fact, according to journalist Yashar Ali, as quoted by Zero Hedge, “What makes me nervous is illustrated in the WSJ story. The Iranian government has always operated on its own timeline. If you think Iran lobbing missiles over the border is the kind of revenge they ultimately have in mind, you’re wrong.”
Plus, we have to keep an eye on Iran’s uranium enrichment plans. Following the death of Iran’s general, Iran is abandoning all restrictions on uranium enrichment.
That means “Tehran could install new centrifuges—machines that produce enriched uranium—and further ramp up the purity of the fuel it produces closer to weapons-grade material,” says The Wall Street Journal. “That would allow Iran to reduce to less than six months the time needed to amass enough nuclear fuel for one bomb, once it reinstalls a sufficient number of its centrifuges, a process expected to take months.”