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Global oil prices surge after Iranian missile strike on Israel

Global oil prices surge after Iranian missile strike on Israel

Posted October. 03, 2024 07:20,   

Updated October. 03, 2024 07:20

한국어

Global oil prices surged on Tuesday following an Iranian missile attack on Israel, sparking concerns about a broader conflict in the Middle East. As tensions rose, safe-haven assets, including gold, saw significant gains, while stock markets and cryptocurrencies suffered sharp declines.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery spiked over 5.5% during the day amid news of the attack. It eventually settled at $69.83 per barrel, up $1.66, or 2.44%. Brent crude for December delivery on the ICE Futures Exchange also saw a rise, jumping as much as 5% before closing up $1.86, or 2.59%, at $73.56 per barrel.

Israel has vowed retaliation against Iran, raising fears that an escalation could target Iran's oil infrastructure, which might further disrupt global supply. According to CBNC, as Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), becomes involved in the conflict, up to 4% of the world’s crude oil supply could be threatened. This could push prices back to $100 per barrel if further sanctions or attacks occur.

Gold prices soared as investors sought refuge in safer assets. December gold futures on the New York Mercantile Exchange climbed 0.9%, settling at $2,690.30 an ounce, with spot gold hitting a record intraday high of $2,685.42.

In contrast, the stock and cryptocurrency markets reacted negatively to the escalating geopolitical tensions. In New York, the Dow Jones Industrial Average dropped 173.18 points, or 0.41%, to close at 42,056.97. The S&P 500 fell by 53.73 points, or 0.93%, to 5,708.75, while the Nasdaq Composite plunged 278.81 points, or 1.53%, to 17,910.36. Bitcoin also took a hit, dropping nearly 5% and briefly falling below the $61,000 mark.


Woo-Sun Lim imsun@donga.com