In the centre of Manhattan’s Financial District, where traders hustle past the New York Stock Exchange’s iconic columns, the mood is surprisingly steady. Inspite of Israel-Iran clashes entering their second week, with 639 civilian deaths in Iran, per human rights groups, Wall Street shrugged off geopolitical fears, pushing stocks higher. The S&P 500 rose 1%, and the Nasdaq climbed 1.5%, while Brent crude fell 1.3% to $73.23, per market data. “It’s business as usual,” said trader Aisha Patel, sipping coffee at a Wall Street deli, her eyes on a Bloomberg terminal.
The conflict, sparked by Israel’s June 13 strikes on Iran’s nuclear sites and Iran’s missile retaliation, had markets on edge last week, with oil prices spiking 12%. Fears of Iran blocking the Strait of Hormuz, a key oil route, eased as its export hub, Kharg Island, remained unscathed, per reports. “The market’s betting on no major disruption,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. New York, the epicenter of global finance, saw trading volumes surge, with the NYSE handling 1.2 billion shares daily, per exchange data.
For New Yorkers, the calm is bittersweet. Higher oil prices, driven by Middle East unrest and China’s rare earth curbs, have pushed gas to $4.20 a gallon in Brooklyn, per AAA. Jamal Carter said, a Queens taxi driver, idling near Grand Central “I’m paying more to commute,” . Yet, Wall Street’s resilience reflects confidence in U.S. economic strength. The Federal Reserve, meeting this week, is expected to hold rates steady, wary of inflation risks from Trump’s proposed 25% tariffs, paused until July 14, per economic analysts.
Investors remain cautious. “We’re not out of the woods,” said J.P. Morgan’s Russ Mould, warning of complacency if Iran escalates. The VIX, a fear gauge, hit 22, above its average of 20, signaling volatility, per Schwab’s market update. New York’s financial sector, employing 350,000, thrives on such swings, with hedge funds like Citadel posting gains. “Volatility’s our friend,” said a Lower Manhattan trader. Still, fears of stagflation—rising prices and slowing growth—loom, per Apollo’s Torsten Slok.
The city’s response is pragmatic. “We keep trading, no matter the headlines,” said Patel. Some firms are diversifying into gold and treasuries, seen as safe havens, with gold up 1% to $2,665 an ounce. Mayor Eric Adams’ office is monitoring economic impacts, but no new measures are planned. Can New York’s markets stay unfazed if tensions worsen? Will oil price relief hold? For now, as Carter fuels up and Patel watches her screens, Wall Street hums, betting on stability amid the storm.
