US bombs Iran, oil prices set to surge
A fundamental concern for markets will have oil prices in the Middle East and therefore the potential impact on inflation. An increase in inflation may reduce consumer confidence and reduce the chances of close -term interest rates.
“This is adding a complex new risk of risk that we need to consider and pay attention to, Jack said Jack Ablin, Cresset Capital’s chief investment manager. “This will definitely have an impact on energy prices and potentially inflation.”
Since Israel attacked Iran at the beginning of this month, oil prices have already increased significantly, and merchants and analysts are preparing to increase more price – but still predicting where the crisis went from here.
When reopened, the markets can be for a wild increase. Credit: AP
“Iran depends on how Iran reacts in the coming hours and days – but if this responds as they threatened before, she can put us in a way for $ 100,” said Saul Kavonic, MST Marquee.
“This US attack may see a conflict in Iran by targeting regional American interests containing the Gulf oil infrastructure in places like Iraq, or by targeting regional American interests that harass the passage through the Strait of Hormuz.”
The maritime Choquepoint, which is at the mouth of the Persian Gulf, is a vital channel not only for Iranian shipments, but also for other members of the organization of Saudi Arabia, Iraq, Kuwait and oil export countries.
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Joe Delaura, a former merchant and global energy strategist in Rabobank, said that prices are expected to increase when oil is reopened. “The market requires certainty, and now it pushes the US firmly to the Middle East Theater,” he said. “But I think it means that the US Navy will be tasked with keeping the throat open, and adding prices to USD $ 80 in the barrel range.
Before the US attack on Sunday, Oxford Economics analysts modeled three scenarios, including the increase in conflict, a complete closure in Iranian oil production and the closure of the Hormuz Strait.
In the most violent situation, global oil prices have increased to $ 130 per barrel, and Oxford’s note brought US inflation closer to 6 percent by the end of this year.
On Sunday, Ether fell in the crypto markets sharply, Bitcoin remained fixed after Trump said that American bombing planes and missiles hit Iran’s three main nuclear areas.
Reuters, Bloomberg
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