The Dow Jones Industrial Average took a brutal 200 point fall at the stock market open on Monday. The fallout from Trump’s assassination of Qassem Soleimani continues to rock the financial markets as tens of thousands gather on the streets of Tehran for the Iranian general’s funeral.
Among the chants of “death to America” came a powerful threat from Soleimani’s daughter, Zeinab. She directed her speech to “crazy Trump” and warned of a “dark day” for America. But she saved the most chilling line for the families of American soldiers.
Families of the American soldiers in western Asia have witnessed America’s humiliation in Syria, Iraq, Lebanon, Afghanistan, Yemen and Palestine wars, and will spend their days waiting for the death of their children.
The Dow Jones fell almost 200 points at the open today. The threat of war in the Middle East has forced traders into risk-off mode as uncertainty grips the markets. Safe havens like gold rallied alongside Treasury bonds and oil.
The threat from Soleimani’s daughter comes just hours after an Iranian MP warned of a retaliatory attack on the White House. As tensions run high, MP Abolfazl Abutorabi reportedly told reporters:
“We can attack the White House itself, we can respond to them on the American soil. We have the power, and God willing we will respond in an appropriate time.”
The Trump administration responded with a list of 52 further Iranian targets, including cultural sites which would be widely seen as a war crime. A move Trump strongly defended.
They’re allowed to kill our people… They’re allowed to torture and maim our people. They’re allowed to use roadside bombs and blow up our people. And we’re not allowed to touch their cultural site? It doesn’t work that way.
Global stock markets and the DJIA took an immediate hit when news of Soleimani’s assassination broke on Friday. Geopolitical tension in the Middle East is a warning sign to traders who quickly piled into haven assets.
As CCN.com reported, however, this is more likely to be a short-term stock market reaction rather than a long-term trend.
“Historically, financial markets recover swiftly after news of rising tension in the Middle East. CNBC analyzed the market’s reaction to 20 crises spanning 30 years and found that while stocks initially drop, they make their way higher in the following three months.”
While analysts broadly expect a period of volatility, the tensions don’t currently signal an end to the business and market cycle.
Last modified: June 14, 2020 9:53 AM UTC