On Thursday, in the second half of the session, a sudden escalation in geopolitical tensions triggered a sharp rise in Brent and WTI barrel prices. Brent climbed 1.45% to $90.65, and WTI 1.35% to $86.59. This trend has peaked since the end of October, reflecting the instability of the market.
Tensions between Israel and Iran exacerbate volatility. Israel’s recent attack on an Iranian diplomatic compound in Syria has made investors even more nervous. John Kilduff of Again Capital stresses the market’s uncertainty about a possible Iranian retaliation.
International reactions and economic impact
Joe Biden’s attitude towards Israel has undergone a significant change. His proposal to make US aid conditional on tangible action by Israel in Gaza introduces a change of course. At the same time, the White House expressed its displeasure with Netanyahu, exacerbating diplomatic tensions.
These geopolitical factors have a direct impact on financial markets. Rising geopolitical tensions drove gold prices to a record high, while Wall Street suffered a sharp fall. The analysis by Phil Flynn of Price Futures Group describes an oil market reacting strongly to these uncertainties.
Consequences and prospects
Investors are increasingly risk-averse. Gold buying and stock selling reflect this trend. Although this reaction is historically short-lived, it highlights the market’s sensitivity to geopolitical crises. The US employment report is eagerly awaited. It will play a crucial role in the Fed’s monetary policy and influence the financial markets. The anticipation of this report underlines the importance of economic indicators in a tense geopolitical context.
The oil sector remains on alert. Fluctuating oil prices have a direct impact on the global economy and the energy sector. This situation calls for constant monitoring of geopolitical and economic developments.
