“The price of crude oil soars after the attacks on a key refinery in Saudi Arabia and the escalation of war between the US, Israel and Iran. Wall Street operates in the red amid fears of a prolonged conflict that is already shaking the main stock markets in Europe and Asia.” This is how Forbes summarizes the outlook for this Monday, March 2.
According to other portals, oil prices skyrocket more than 7% and generate a flight towards safe haven assets, especially gold.
Before the formal opening of the stock market in New York, all the stock markets fell: the S&P 500 futures lost 1.1%, those of the Dow Jones industrial index fell 1.2% and the Nasdaq technology weighting fell 1.5% due to the fears unleashed by the attack by the United States and Israel on Iran but also by Iran’s responses to different countries in the region allied to the United States. Several of them energy producers.
Among the concerns is not only the intensity of the aggression and the responses, but also the timing. Trump told the New York Times that the assault could be sustained for “four to five weeks,” but many speculate it would be longer-term.
According to other media, “with OPEC announcing a production increase of 206,000 barrels per day in a desperate attempt to stabilize the market and airlines plummeting 8.70% due to the closure of the skies in the Gulf, the diagnosis is devastating: the market faces a scenario of imported stagflation where the success of semiconductors in Asia is not enough to offset the risk of a total conflict.”
It is clear that the imperialist aggression of the US and Israel not only brings more death and destruction, but also new economic and social crises that extend beyond the Middle East.
Source: www.laizquierdadiario.com
