HerMoney with Jean Chatzky: "War, Markets, and Your Money: What the Middle East Crisis Means for Your Finances"

Release Date: June 23, 2025

In this compelling episode of HerMoney with Jean Chatzky, Jean delves into the escalating Middle East crisis and its profound implications for personal finances and the broader economy. Joined by international relations analyst Ben Wheeler, the discussion navigates through geopolitical tensions, market reactions, investment strategies, and personal financial resilience in uncertain times.

1. Setting the Stage: The Middle East Crisis

Jean Chatzky opens the episode by highlighting the rapid escalation of tensions in the Middle East, particularly focusing on the recent involvement of the United States in the conflict. She shares her personal unease, stating:

"I woke up at 4am Sunday morning, read the headlines and could not get back to sleep." — Jean Chatzky [00:59]

The core of the discussion centers around the US military strikes on Iranian nuclear sites, the uncertain state of Iran's nuclear capabilities, and the potential for further escalation.

2. Understanding the Geopolitical Landscape

Ben Wheeler provides a detailed breakdown of the current situation:

"Iran has this nuclear program and how much they are enriching up to depends on who you ask." — Ben Wheeler [03:55]

He explains the sequence of events leading to the strikes on Iran's nuclear facilities, Israel's surprise attack, and the possible Iranian retaliation, including threats to US bases and strategic waterways like the Strait of Hormuz.

3. The Strait of Hormuz: A Critical Economic Artery

A significant portion of the conversation focuses on the Strait of Hormuz, a vital corridor for global oil transportation.

"The Strait of Hormuz is a narrow corridor in the Persian Gulf where almost all oil that comes out of the Middle East is transited through..." — Ben Wheeler [05:36]

Wheeler emphasizes the strategic importance of this waterway and the severe economic repercussions should Iran decide to shut it down, potentially causing oil prices to skyrocket and affecting the global economy.

4. Market Reactions Amidst Conflict

Jean observes the current market behavior in light of the crisis:

"At 12:07pm the markets are up a little bit overall, they seem to be shrugging at this." — Jean Chatzky [06:07]

Contrary to typical market sell-offs during geopolitical tensions, the markets have remained resilient, even rallying slightly. Ben Wheeler attributes this to the market's focus on other factors, such as tariffs, which have overshadowed the immediate impact of the conflict.

5. Historical Context: Markets During War

Delving into historical parallels, Wheeler references Ben Carlson's analysis:

"During two of the worst wars in modern history, the US stock market actually gained 115%." — Jean Chatzky [10:08]

He explains that increased government spending during wars often acts as an economic stimulus, bolstering sectors like military contracts and infrastructure, which can drive market gains despite the overarching conflict.

6. Interest Rates and Economic Policy

The discussion shifts to the interplay between the conflict and US economic policies, particularly interest rates.

"If we start seeing inflation go up because of oil prices, then I think, I don't know if we get the cut." — Jean Chatzky [11:36]

Wheeler assesses the likelihood of accelerated interest rate cuts amid rising inflation driven by potential oil price surges, highlighting the delicate balance policymakers must maintain.

7. Personal Financial Strategies in Turbulent Times

Jean emphasizes the importance of personal financial resilience:

"How do I shore up my own personal finances? How do I make sure that I'm okay, that my family is okay..." — Jean Chatzky [12:07]

Ben Wheeler advises focusing on investments with stable demand, such as oil, pharmaceuticals, and consumer staples. He recommends diversifying portfolios to include sectors that remain essential regardless of geopolitical upheavals.

8. The US Bond Market and National Debt Concerns

Addressing the stability of the US economy, Wheeler discusses the implications of rising national debt and its impact on the bond market:

"I think we're in deep trouble... unfortunately, we need to raise revenue streams while cutting spending, which is not currently happening.*" — Ben Wheeler [17:52]

He warns of potential instability in the bond market due to increasing debt levels and political unpredictability, urging investors to exercise caution.

9. Evaluating Alternative Investments: Gold vs. Crypto

The conversation turns to alternative investment avenues amid uncertainty.

"You could never go wrong with gold..." — Ben Wheeler [20:57]

Wheeler endorses gold as a timeless and reliable investment, contrasting it with his skepticism towards cryptocurrencies, which he views as volatile and unsupported by tangible assets.

10. Looking Ahead: Optimism and Stability

Concluding the episode, Wheeler offers a cautiously optimistic outlook:

"Perhaps there is stability on the horizon..." — Ben Wheeler [21:57]

He speculates that the current turmoil may subside within a few months, bringing back market stability and easing geopolitical tensions, although he acknowledges the unpredictability of such scenarios.

11. Additional Resources

Before departing, Wheeler promotes his own podcast, Unclassified, which delves deeper into international affairs and their economic implications.

Conclusion

This episode of HerMoney with Jean Chatzky serves as a vital resource for women seeking to navigate their finances amidst global uncertainties. By dissecting the Middle East crisis and its multifaceted impact on markets and personal investments, Jean and Ben equip listeners with the knowledge to make informed financial decisions in turbulent times.

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