America’s entry into the war between Israel-Iran has increased global tension and US Air Strike has further increased the possibility of widespread conflict. Its major impact is likely to appear when the stock market opens on the first trading day of the week, then crude can also have a big jump in the rising prices. Already, the markets from America to Asia were seen under pressure due to the war between the two countries. Meanwhile, the possibility of increasing gold prices (gold rate), which is considered to be the place of safe investment, has also deepened.
The danger of rusting of US entry
In the ongoing battle between Israel -ran War, the US jumped into this battle and has an air strike on Iran’s three nuclear sites- Fordo, Natanj and Isfahan. According to the reports, US President Donald Trump has prepared and carried out an attack as a pressure strategy to bring Tehran back to the conversation table. Since then the middle East is concerned and the US Army is on high alert for possible Iranian retaliation. This has strengthened the possibility of war and increase and this tension does not seem to decrease.
Crude can cross $ 120
Iran did not seem to stop after the US attack and has intensified the attack on Israel. The biggest threat from this war is being seen as an increase in crude oil prices, which can prove to be inflation in all countries. Yes, during the last week, Brent crude futures rose by about 18% and the Brent Crude Price reached $ 79 per barrel, although it is again trading around $ 77. At the same time, WTI Crude Oil is trading around $ 75.
Meanwhile, shipping insurance companies have declared the most essential oil route Hormuz Strait (Strait of Hormuz) as a high risk area, which doubled the tanker rates and some ships have been forced to change their path. According to a Business Today report, an energy strategist of Saxo Markets has said, “The risk premium on oil is back, if the Straight of Hormuz is interrupted, crude oil prices cannot be denied reaching $ 120 per barrel.” Outlook has also been issued by JP Morgan, City and Deutsh Bank, saying that the price of Crude Oil of Strait can increase up to $ 120–130 per barrel, or the prices may be even higher.
Due to increasing war, the stock markets raised
The possibility of big earthquake after the US air strike has also deepened in the stock markets around the world, which is already under pressure, before the possibility of Israel -ran War. S&P 500 and NASDAQ had been recorded on Friday due to the risk of increasing inflation due to continuous rise in oil prices. Initiatives are also seen running towards safe targets in the situation of war, which led to a rise in US Dollar and Gold Rate. The market has become more unstable due to the shutdown by investors. However, when we talk about the Indian stock market, it was closed rapidly on the last trading day of last week. BSE Sensex climbed 1046 points (1.29%) to close at 82,408.17, while NIFTY closed at 25,112.40 with a jump of 319.15 points (1.29%).
Expert said- ‘Market on knife edge’
On the opening of the stock markets on Monday, a major impact of America’s entry in Israel-Iran Jung can be seen. Market analysts are also warning that if Iran retaliates or new attacks, then the market may disintegrate. A portfolio manager has even said that equity markets are currently on the edge of the knife. Not only the market, but these battles can cause even more troubles, because high oil prices can derail the rate of interest rates of central banks and can increase global inflation.