Oil Soars 55% After a Month of War in the Middle East and Hits Markets
Uncertainty about the conflict has marked recent weeks in financial markets. Photo: EFE
TL;DR
- The Middle East conflict has caused a month of volatility in the global energy market.
- Oil prices have surged, with Brent crude up 55.31% to $112 and WTI approaching $100.
- Natural gas prices have revalued by over 70%.
- Global stock markets have seen significant drops, with various indices in Europe, Asia, and the US falling.
- Cyclical sectors like consumption and banking have been most affected, while energy companies have benefited.
- Gold has lost approximately 14.5%, its role as a safe-haven asset questioned.
- Markets anticipate potential interest rate hikes due to the risk of renewed inflation from rising energy prices.
- Central banks (ECB and Federal Reserve) have kept interest rates unchanged for now.