- The Israel-Iran conflict could be a positive for the stock market, Steve Eisman says.
- "The Big Short" investor said it would be a "disaster" if Iran developed and shared nuclear weapons.
- Eisman thinks markets are now focusing on how the conflict is impeding nuclear proliferation.
Reuters/ Jessica Rinaldi
ADVERTISEMENT
Recommended articles
The investor, best-known for his bet against the US housing market preceding the 2008 financial crisis, said he believed developments unfolding between the two nations were potentially "extremely positive" for the stock market and the world.
That's because he believes that, had there been no conflict between Israel and Iran this month, Iran would be closer to developing a nuclear weapon, Eisman said. That could result in other countries in the region gaining access to nuclear weaponry or building up nuclear weapons in response, which would have been a "disaster," he told CNBC on Tuesday.
"And unfortunately Iran is run by, the only way you can call it is a death cult," Eisman said. "So, getting rid of a death cult anywhere on planet earth, I think, is a very positive thing, especially when that death cult is close to getting nuclear weapons."
ADVERTISEMENT
Eisman said he believed markets have started to digest the positive implications of the conflict. US stocks sank and oil prices spiked shortly after Israel first attacked Iran, but the market reaction has been more muted since, despite tensions creeping higher.
US stocks were relatively flat on Tuesday, despite President Donald Trump leaving the G7 summit early to deal with conflict in the Middle East and stating on Truth Social that everyone "should immediately evacuate Tehran."
"Now it's focused on it," he said of the latest market reaction to recent developments. "I think it's potentially unbelievably positive."
Eisman's comments on conflicts in the Middle East have previously drawn criticism. Last year, Eisman was placed on leave from Neuberger Berman after he posted on X that the world was "celebrating" the death toll in Gaza. Eisman later wrote that the post was a "mistake" and deleted his X account.
Eisman added that while the Israel-Iran conflict could ultimately be a positive for markets, the potential for a wider trade war from Trump's tariffs is one big thing he's worried about.
ADVERTISEMENT
"If we reach deals with all these countries and there's no trade war, I'm very positive on the US economy long-term, and I would be very positive on the market. If there's a trade war, chances are we go into a global recession," he said.
