As the specter of a possible Iranian attack on Israel looms over the Middle East, the stock market takes a hit while crude oil prices soar in the U.S. – with Dow plunging 475 points and Brent crude futures settling at $90.45 a barrel. Amidst escalating geopolitical tensions, investors seek refuge in safe havens, but concerns over inflation and production costs persist. JPMorgan Chase CEO voices worries about global economic impact as Fed officials mull over potential rate hikes. Stay tuned for more updates on the unfolding crisis and its implications on the market.
The tension in the Middle East has sent shockwaves through the stock market, with US stocks taking a hit on Friday. The Dow Jones Industrial Average fell by a staggering 475 points, the S&P 500 dropped by 1.5%, and the Nasdaq Composite lost 1.6%.
Investors wasted no time in seeking safe havens, turning to assets like bonds and gold as fears mounted over a possible Iranian attack on Israel. This uncertainty also led to a spike in oil prices, with Brent crude futures settling at $90.45 a barrel.
Chicago Federal Reserve President shared his concerns about the impact of rising oil prices on inflation and production costs. Meanwhile, the CEO of JPMorgan Chase voiced worries about how geopolitical turmoil and persistent inflation could affect the global economy, leading to a 6.5% drop in JPMorgan Chase shares on Friday.
The Federal Reserve is contemplating raising interest rates if progress on inflation slows down, especially in light of concerns surrounding ongoing inflation and economic uncertainties. The University of Michigan’s consumer survey further reflected a subdued sentiment towards the economy.
Reports of Israel gearing up for a potential direct attack by Iran caused crude oil futures to surge, marking the most significant escalation of tensions in the Middle East since October. Both West Texas Intermediate and June Brent futures prices experienced notable increases.
Exxon Mobil saw its stock reach an all-time high as the oil rally lifted the energy sector. The situation escalated further as Iran’s Supreme Leader vowed to retaliate against Israel for a missile attack in Syria, prompting Israel to warn of retaliation if targeted by Iran.
If Iran does attack, there is a possibility that Brent crude oil futures could soar to $100, potentially leading to further price spikes if there is any disruption in the critical oil shipping route, the Strait of Hormuz.
Read also :IRCTC introducing NFT Train Tickets for Holi Travel