Brent crude climbed nine per cent while West Texas Intermediate rose seven per cent as traders weighed the risk of supply disruptions, particularly in the Strait of Hormuz
Global markets opened the week under pressure as oil prices surged and US stock futures fell following weekend attacks on Iran by the United States and Israel.
According to the Business Insider, Brent crude climbed nine per cent while West Texas Intermediate rose seven per cent as traders weighed the risk of supply disruptions, particularly in the Strait of Hormuz, which isa key route for global energy shipments.
As per the outlet, economist Mohamed El-Erian wrote: “The immediate price shocks are being accompanied by a fresh wave of supply chain disruptions. This isn’t just a question of whether the Straits of Hormuz are physically closed; the logistical friction is already here.”
Moreover, Barclays analysts were cited describing the situation as the “worst fears” for oil.
Strategists at Franklin Templeton added: “Qatar has the world’s third-largest LNG export capacity, and ~20 per cent of global LNG trade transits the Strait of Hormuz (primarily Qatari volumes), which makes shipping risk a gas-market event as much as an oil-market event.” They called the strait “the macro circuit breaker.”
US stock futures traded sharply lower as investors assessed the risk of a prolonged conflict.
Meanwhile, gold rose two per cent, Bitcoin fell about two per cent, and the dollar strengthened modestly as investors sought safer assets.
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