Oil prices jump after night events in Iran
Markets react to events in Iran. Oil is more expensive, the US index contracts are falling, and gold and dollar gain value.
On the night of Sunday to Monday, the first reactions of global financial markets began to tighten the situation in Iran and the US participation in conflict with this country. The raw materials markets responded the fastest – in particular oil and gold.
The price of oil is growing
The price of WTI oil in term contracts increased by about 3.8 percent, reaching a value above $ 76 per barrel. At the same time, Brent oil increased by 3.9 percent to $ 78. These increases occurred just after midnight, in a direct response to reports of the possible closure of the Iran Strato. This decision was approved by the Iranian parliament after American attacks on nuclear purposes. The final decision in this matter, however, belongs to the Supreme National Security Council of Iran.
The Strait of Ormuz is one of the key oil points in the world – about 17.4 million barrels of oil flows through it every day, which is 20 percent. global deliveries. The increase in tension between Iran and Israel and US involvement in conflict increase the risk of disorders in energy supply.
Stable on the currency market
On the currency markets, the situation remained relatively stable. The dollar slightly strengthened against the euro – the EUR/USD pair fell by 0.3 percent, reaching 1,1485. In the case of a dollar exchange rate relative to the zloty, an increase of about 0.5 percent was noted. – up to PLN 3.7215.
At the same time, decreases were recorded by Futures contracts for the main American indexes. Dow Jones reduced by 0.6 percent (257 points), S&P 500 by 0.6 percent, and Nasdaq 100 by 0.7 percent Investors were looking for safe assets, which was confirmed by an increase in gold prices by 0.4 percent, to the level of $ 3394.85.
Experts indicate that the further development of the situation around the Strait of Ormuz can have a key impact on the prices of raw materials. Any blockage of this trail could lead to a further increase in oil prices – up to 50 percent. – and for subsequent geopolitical tensions. On the night of Saturday to Sunday, the US carried out raids on Iranian nuclear installations. President Masud Pezeszkian announced retaliation and continuation of the nuclear program.
