Oil and gas prices soar, while global stock markets fall after US attacks on Iran
Brent had already progressively incorporated a geopolitical risk premium to stand at 72 dollars on Friday. Photo: iStock
TL;DR
- Oil and gas prices soared, and stock markets fell following attacks between the US, Israel, and Iran.
- The airline and tourism sectors were significantly impacted, with major stock declines.
- Brent crude oil prices rose nearly 14% and West Texas Intermediate nearly 12% following the attacks.
- The conflict threatens maritime transport through the Strait of Hormuz, a key global oil transit route.
- European natural gas prices surged over 20% due to risks to LNG exports from the Gulf.
- Asian and European stock markets generally closed lower, with Shanghai being a minor exception.
- Energy companies like Shell, BP, Repsol, and TotalEnergies saw significant gains.
- Shipping companies are suspending passage through the Strait of Hormuz, and insurance costs have become prohibitive.
- Analysts suggest oil prices could exceed $100 per barrel if supplies through Hormuz are prolonged.
- OPEC+ nations agreed to increase oil production quotas for April.
- Gold prices rose 2%, and the dollar strengthened as investors sought safe-haven assets.