The global financial markets' reaction to the US military strike on Iran resulted in significant price fluctuations in oil, cryptocurrencies, and stocks.
Oil Prices Soared and Then Dropped
Following the US strike on Iran, oil prices surged sharply. In the first trading session, US crude jumped $1.76, or 2.38%, to $75.60 per barrel. Brent crude rose by $1.80, or 2.34%, reaching $78.81. However, prices quickly reversed despite earlier dramatic increases. Traders are focused on Tehran, while Iran's Foreign Minister Hossein Amir-Abdollahian stated that Iran reserves 'all options' to defend its sovereignty.
Cryptos: Bitcoin's Drop
The cryptocurrency market reacted swiftly. Bitcoin fell to $98,000, its lowest level in over a month. Less than an hour later, it rebounded above $102,000 before dropping again. As of the time of writing, it was priced at $100,879. Over $1 billion in crypto positions were liquidated in just 24 hours, with more than 95% being long positions. Inflows into Bitcoin ETFs also sharply declined, affecting market volatility.
Stocks Bleed Across the World
Futures tied to US stocks also began to drop, with the Dow Jones losing 109 points, or 0.3%. Asian markets mirrored this decline, with Japan's Nikkei 225 falling 0.56% and South Korea's Kospi down 1.05%. European markets showed mixed results, with Germany's DAX rising 1.27%, while London's FTSE dropped 0.2%.
Military actions and their repercussions have a devastating impact on the global economy, causing sharp fluctuations in oil, cryptocurrency, and stock markets. The future market response will depend on the ongoing developments in Iran.
