Desk Report,
Oil and dollar prices rise in global markets, due to US attack on Iran
Asian stock markets fell slightly on Monday, with oil prices hitting a five-month high. Investors were worried about Tehran’s response to a US attack on Iran’s nuclear facilities. This could have an impact on the global economy and inflation.
Oil and dollar prices rise in global markets, due to US attack on Iran
Western stock markets were closed on Sunday. As a result, there was no immediate impact on the market. Although the demand for the dollar as a safe haven increased, investors did not panic and rushed to the dollar. Oil prices rose by about 2.8 percent, although they fell slightly after the increase at the beginning of the day. Optimists thought that Iran might take a step back by curbing its nuclear activities, and even the country’s government might change. J.P. Morgan analysts have warned that oil prices have suddenly increased by up to 76 percent after regime changes in the Middle East in the past—an average increase of 30 percent in the long term.
In this situation, control of the Strait of Hormuz is becoming the most important. About a quarter of the world’s oil and 20 percent of liquefied natural gas are transported through this waterway. Iran does not have full control of this channel, although it is one of the country’s strategic weapons.
Vivek Dhar, a commodity analyst at the Commonwealth Bank of Australia, says, “It is logical for Iran to create some strategic risk without completely closing the Strait of Hormuz; because, if the channel is closed,
According to analysts, if Iran strategically blocks shipping in the Strait of Hormuz, the price of Brent oil could reach at least $ 100 per barrel. However, for now, the situation is under control. On Monday, the price of Brent oil rose 2.7 percent to $ 79.12 and the price of US crude oil rose 2.8 percent to $ 75.98. On the other hand, the price of gold fell slightly, 0.1 percent, to $ 3,363 per ounce.
