District threat Middle East drives oil and gold to new height

After new Israeli attacks on goals in Iran, prices for oil and gold have risen sharply. At the same time, the global stock markets turned deep red. The increasing tensions in the Middle East, a key region for oil production, cause nervousness among investors.

What do the financial markets do?

The price of rough Brent oil, the leading index of Atlantic crude oil, rose by more than 10 percent after the news and peaked at the highest level since January. Investors are looking for certainty in Atlantic oil in relation to oil produced in the Middle East.

Although the price subsequently dropped slightly, a barrel of Brent oil still noted an increase of 5.5 percent, at $ 73.12. This seems to be the biggest daily win since 2022.

The impact was of course immediately felt at the stock exchanges. In London, the FTSE100 opened 50 points lower, despite the fact that the index closed a record the day before. The aviation sector in particular got blows. Companies such as IAG (parent company of British Airways) and EasyJet saw their shares fall by more than 4 percent due to surrounding walking routes around the conflict area.

The uncertainty trickled to Asia. The Nikkei index in Japan lost 1.3 percent, the Kospi in South Korea fell 1.1 percent and the Hang Seng index in Hong Kong handed in 0.8 percent.

European stock markets collectively fell by more than 1 percent. The Stoxx 50-Futures fell by 1.6 percent, while American S&P e-mini Futures and Nasdaq futures were 1.7 and 1.8 percent lower. The Dutch AEX is currently submitting 0.72 percent.

The return on American ten -year government bonds fell to 4.31 percent, the lowest point in a month. At the same time, the dollar index won 0.5 percent. Bitcoin (BTC) fell by almost 3 percent in the last 24 hours and now acts at around 104,600 dollars. Economist and analyst Alex Krüger thinks that the digital currency will not suffer from this for more than a few days.

Investors currently seem to seek refuge in safe ports. The gold price rose by 1.5 percent to 3422 dollars per ounce, close to the 3,500 dollars record in April.

The Swiss Frank and Japanese yen also gained ground opposite the dollar, with 0.4 and 0.5 percent respectively. Oliere Giant BP and Shell also benefited, with price gains around 2 percent.

How to proceed?

Israel calls the attack a “preventive action” against Iran’s nuclear program. In response, Iran launched around 100 drones to Israel of which some of which has already been intercepted. The United States does not seem to be involved in the attack of Israel. The American minister Marco Rubio emphasized: “The US was not involved in this one -sided action by Israel.”

The question now is whether the situation escalates or whether it ends with a Sisser. What is clear is that the markets are focused and investors must be alert for further volatility. With the prospect of two conflicts and a continuous trade war, it forces investors to reveal risks.