Brent crude prices fell nearly $2 after a rise amid increased uncertainty regarding possible U.S. intervention in the Israel-Iran conflict.
Escalation of the Israel-Iran Conflict
In light of current economic and political circumstances, the situation in the region has been aggravated by Israel's recent attacks on alleged nuclear-related sites in Iran, to which Iran responded with missile and drone strikes. The conflict has lasted for a week without signs of easing.
Reaction on Oil Prices
As of 02:55 GMT, Brent crude futures dropped by $1.89, or 2.4%, to $76.96 per barrel. However, the price still remains about 3.8% higher than the previous week. Analyst Phil Flynn noted that "Oil prices surged amid fears of increased U.S. military involvement in Israel's conflict," adding that "the White House has left open possibilities for de-escalation."
Stock Market and Trump's Comments
The stock market also faced pressure as Dow Jones and S&P 500 futures slipped. Consequently, investors became concerned about the potential for U.S. military intervention. President Trump also intensified his criticism of Federal Reserve Chairman Jerome Powell, pointing to high rates and their negative impact on the economy.
The uncertainty surrounding the Israel-Iran conflict continues to significantly impact global oil markets and stock indices, highlighting the importance of political decisions in the economic sphere.
