Following Israel’s announcement that it had hit Iran, tensions in the Middle East have dramatically increased, and oil prices throughout the world have surged. Shortly after the news broke, the benchmark Brent Crude price increased by almost 10%, hitting its highest level since January.
A dispute between Israel and Iran worries traders that supply from the energy-rich area may be disrupted. The price of crude oil impacts everything from the price of groceries to the cost of filling up your automobile.
When trading got underway in Europe, prices were almost 5% higher than Thursday’s closing price. The price of oil traded on the US’s Nymex was $73.20 a barrel, while the price of Brent crude sold in London was $72.8.
Share values declined on Friday in Europe and Asia. The FTSE 100 index in the UK started the day 0.6% down. Gold and the Swiss franc, two so-called “safe haven” investments, have also increased in value.
These assets are viewed by some investors as more dependable investments during turbulent times. The Israeli Defence Forces (IDF) said that Iran had fired some 100 drones in Israel’s direction after the strike. As seen by the direct strikes that Israel and Iran had on one another in April and October of last year, it’s a volatile scenario that might be swiftly defused,” Vandana Hari of Vanda Insights told the BBC.
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