The conflict between Israel and Iran is escalating, reflecting on oil prices and global markets. Weekend attacks prompted investors to seek safer assets.
Israeli Attacks on Iranian Facilities
On Sunday night, oil futures spiked after Israel launched strikes against Iran's natural gas facilities. According to Iranian state media, two key South Pars gas facilities were hit, alongside an oil depot near Tehran. These actions followed airstrikes by Israel on Iran's military leadership and nuclear infrastructure just two days earlier.
Iran's Response and Threat to Key Route
Iran retaliated by launching missile strikes on a major refinery in Haifa, raising concerns over global oil supplies. A senior Iranian commander threatened to shut the Strait of Hormuz, a crucial route through which over 20% of global oil exports pass.
Markets React to Escalation
Oil prices surged, with U.S. crude oil rising 3.7% to $75.67 per barrel and Brent crude up 4.94% to $77.90. Stock futures fell, including a 0.2% drop for both the Dow Jones and S&P 500. Gold emerged as a more attractive asset, reaching $3,450, while the cryptocurrency market remained largely stable.
The escalation of the Israel-Iran conflict significantly impacts energy and stock markets. Investors seeking safety gravitate towards gold, while uncertainty looms over the potential closure of vital routes for the global economy.
