Escalation in the Middle East could lead to ‘other actors’ joining the fight: Shah Gilani | Fox Business Video

In a recent segment on 'Varney & Co.', Shah Gilani discussed the ramifications of the ongoing Israel-Hamas conflict on global markets. He warned that increased escalation in the Middle East could draw in additional international actors, potentially destabilizing the region further. This might lead to significant market volatility, particularly affecting energy prices and sectors tied closely to geopolitical tensions.

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Stock Forecasts

XOMView XOM chart on TradingView

Positive

Given the potential for increased instability and conflict in the Middle East, which could disrupt oil supply and lead to rising energy prices, investors should consider energy stocks. Specifically, companies like ExxonMobil (XOM) may benefit from higher oil prices. Additionally, ETFs like the Energy Select Sector SPDR Fund (XLE) could also see upward movement due to sector strength from rising prices.

LMTView LMT chart on TradingView

Positive

Conversely, defense contractors may see increased demand for their products as military engagement escalates. Companies like Lockheed Martin (LMT) could experience a boost in orders and stock price as governments respond to heightened tensions. Investors may want to pay attention to stocks within the defense sector.

CCLView CCL chart on TradingView

Negative

However, sectors such as travel and leisure could suffer as geopolitical fears may lead to decreased consumer spending and travel restrictions. Stocks like Carnival Corporation (CCL) could be negatively impacted as uncertainties may cause travelers to postpone or cancel trips.

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