Some fascinating price action today as stocks surged and oil dumped after Iran retaliated with strikes on US bases in Iraq and Qatar. It seems clear that traders are simply looking through today's actions as 'theater' (the bases were warned beforehand) that actually is de-escalating the situation and CNN reported that "TRUMP DOESN'T WANT MORE MILITARY ENGAGEMENT IN MIDEAST".
Stocks kneejerked lower at the Sunday night futures open, but recovered into the European open. After a drop during the European session, all the majors surged from the US cash open, as oil prices fell and the world seemed oddly complacent that 'mission accomplished' had ended it. Then Qatar closed its airspace and China warned of imminent attacks by Iran on US bases and stocks tanked... which then occurred in Iraq and Qatar.
Interestingly, after the initial panic puke, stocks roared back higher and oil prices tanked as it appears the market is calling Iran's bluff here and basically saying this is all theater...
