As tensions rise between Israel and Iran (the Iran-Iraq conflict), anxiety is rising around the world, sending global markets into panic. Tensions have further increased since Iran launched a massive attack on Israel, launching about 180 missiles. The Israeli Army also claimed to be fully prepared for retaliatory attacks. The impact of heightened tensions between the two countries was first reflected in crude oil prices, which rose by 5% in one breath.
180 missiles hit Israel
First of all, let’s talk about the latest situation of the Iran-Iraq conflict. Let us tell you that the Israeli Army has informed Iran to use ballistic missiles for attacks. Now we will respond to Iran’s attacks. Our plan is ready, but time and time. We choose. According to reports, Iran has launched more than 180 missiles towards Israel. The missile attack, which occurred on Tuesday night, caused shock around the world. In addition, a shooting incident occurred in Jaffa near the Israeli capital Tel Aviv, resulting in eight casualties.
Iran is a major player in the oil sector.
It is worth noting that Iran is a member of OPEC and is considered the largest player in the oil sector. Its involvement in the crude oil industry has increased concerns about disruptions to the oil supply chain. The effect is also evident, as Iran supplies about a third of the world’s oil supply. According to Business Today, the crisis appears to be intensifying due to the Iranian missile attack, and crude oil prices rose sharply after the news broke.
Brent crude oil price suddenly rises
If the impact of tensions between Iran and Israel is taken into account, the price of West Texas Intermediate crude oil (WTI Crude) in the international market suddenly rose by 5%. It had fallen about 2.7% in the past, but after its latest rally, its price once again topped $71 a barrel. If we talk about the global benchmark Brent crude oil price, it has climbed above $75 per barrel, a rise of about 5%.
It also has an impact on global stock markets
It’s not just crude oil prices, rising tensions between Iran and Israel now appear to be affecting global stock markets. On the one hand, the S&P 500 Index fell as much as 1.4%, on the other hand, the Dow Jones Index and the Nasdaq Index also suffered losses. In addition, Japan’s Nikkei also fell 1.77%. Not only that, the CBOE Volatility Index (commonly known as VIX) has reached its highest level in nearly a month.
Gold rises, inflation worries
As the geopolitical tensions sparked by attacks between the two countries begin to take their toll, experts are warning of the side effects of an increase in attacks. Kelly Cox, chief market strategist at Ritholtz Wealth Management, said tensions in the Middle East have clearly sidelined the market. Oil prices go up, bonds go up, gold goes up, stocks go down.
Linvest21.ai CEO David Lin said the oil market is highly sensitive to geopolitical risks in the region and any supply disruption could lead to higher energy prices. In addition to this, Joseph Saluzzi, co-head of equity trading at Themis Trading, said that rising oil prices due to geopolitical tensions could lead to higher inflation.
