Kathmandu. U.S. entry into the Israeli-Iranian war has raised global tensions, and U.S. airstrikes have heightened fears of a wider conflict.
When the stock market opens on the first trading day of the week, its big impact is likely to be seen tomorrow and there may be a strong jump in the already rising crude oil prices. Stock markets from the US to Asia were already under pressure due to the escalating war between the two countries. Meanwhile, fears of rising gold, which is considered a safe investment destination, have also deepened.
Threat of war increased due to U.S. entry
In the ongoing Israeli-Iranian war, the United States has jumped into this war and has carried out air strikes on iran’s three nuclear sites – Fordo, Natanz and Isfahan. If reports are to be believed, US President Donald Trump has designed and implemented such attacks as a pressure strategy to bring Tehran back to the negotiating table. Since then, the Middle East has been worried and U.S. forces have been on high alert for Iranian retaliation. This has increased the fear of further escalation of war and tensions are unlikely to subside.
crude oil price may exceed $120
Iran did not seem to have stopped after the US attack and has intensified its attacks on Israel. The biggest threat from this war is the rise in crude oil prices. Which can prove to increase inflation in many countries. Brent crude futures rose nearly 18 percent in the past week and Brent crude prices rose to $79 a barrel, although since then it has fallen and is trading around $77.
At the same time, West Texas Intermediate (WTI Crude Oil) is trading around $ 75 a barrel. Meanwhile, shipping insurance companies have declared the Strait of Hormuz, the most important oil route, as a high-risk zone. As a result, tanker rates have doubled and some ships have been forced to change their routes.
According to Business Today, an energy strategist at Saxo Markets said, “The risk premium on oil has returned, if the Strait of Hormuz is disrupted, it cannot be ruled out that the price of crude oil will reach $ 120 per barrel.” ’
JP Morgan, Citi and Deuce Bank have also released outlooks and said that if the strait is completely closed, crude oil prices could reach $ 120-130 per barrel. The price may be higher than that.
Global stock market turbulence due to war
Stock markets around the world, which are already under pressure due to the possibility of an escalation of the Israel-Iran war, have also seen a major upheaval after the US air strikes. The S&P 500 and Nasdaq fell on Friday due to the threat of inflation due to a steady rise in oil prices.
Investors are also seen rushing to safe havens in the event of a war. As a result, the price of us dollar and gold has increased. The market has become more volatile as investors have closed their places.
Expert says, ‘Stock market at knife edge’
When the stock market opens on Monday, the major impact of america’s entry into the Israel-Iran war can be seen. Market analysts are also warning that the market could collapse if Iran retaliates or launches a new attack. – Agency
