While the conflict between Israel and Iran is taking a new CAP, the world financial markets vacillate. Brutal rise in oil, flight of gold, fall in scholarships: investors fear an extended war in a key region for the global economy.
Following Israeli strikes against nuclear and military installations in Iran, oil prices flew. The barrel of American crude (WTI) jumped by more than 8 %, approaching the $ 74, while the Brent of the North Sea climbed almost 7.6 %. In the middle of the night, the increases even exceeded 12 %.
For what ? Iran is one of the ten largest producers in oil. And a war in the Middle East, especially in the Gulf Strategic Region, threatens to disrupt one of the essential sea axes for the world supply in black gold. “A quarter of world oil transit by this area,” recalls Ricardo Evangelista, analyst at Activtrades.
As often in times of crisis, investors turn to so -called “refuge” values. Result: the price of gold has won almost 1 %, reaching 3,418 dollars perce (31.1 grams). The dollar has also strengthened against the euro (+0.74 %), taking advantage of its status of refuge currency.
The main stock markets opened in net decline this Friday:
- Wall Street: S&P 500 -1.00 %, Nasdaq -1.26 %, Dow Jones -1.05 %
- Europe: Paris -0.80 %, Frankfurt -1.10 %, Milan -0.99 %, London -0.24 %
- Asia: Tokyo -0.89 %, Seoul -0.87 %, Shanghai -0.75 %, Hong Kong -0.57 %
The markets fear an uncontrollable escalation, especially after the words of the Iranian army which promises a “limitless” response. According to the Iranian Ministry of Foreign Affairs, Israeli strikes constitute a “declaration of war”.
Financial analysts plan a particularly volatile weekend. “A massive response from Iran could upset world economic balance,” warns Stephen Innes of Spi Asset Management. “Many investors could reduce their risk exposure while waiting to see how the situation is evolving,” adds Ipek Ozkardeskaya de Swissquote Bank.
Some companies in the energy sector, on the other hand, benefit from this surge in oil prices. In Paris, Totalenergies earned +1.72 %, BP +2.5 % in London, Shell +1.6 % and Repsol +1.5 % in Madrid. In the United States, Exxonmobil and Chevron earned almost 3 % in a forefoot.
The revival of tension between Israel and Iran is not limited to military ground. It wins the fragile balance of world markets, already shaken by political and economic uncertainties. Between oil, gold, currencies and scholarships, the slightest missile shot could now shake the economic curves of the planet.
