A US-Iran war that shows up on the US mainland changes the game completely. And its ramifications for oil, gold, and the US dollar could be massive.
That is the scenario traders now have to consider after Reuters reported that the FBI warned California police departments that Iran could attempt a drone attack aimed at unspecified targets in California.
A refinery hit could be straightforwardly bullish for oil, while a military or symbolic target could be more decisively supportive for gold.
Ports are another likely focus. California hosts two of the most strategically important in the country. Trade-sensitive equities, and broader risk assets become more relevant in this scenario.
Gold has been swinging with the conflict already, sometimes benefiting from the uncertainty of it all, and sometimes giving back gains when the U.S. dollar strengthens on safe haven demand.
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Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
