Iran, Israel and Oil
Digest more
Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.
Oil prices jumped over 9% after Israel attacked Iran’s nuclear sites, raising tensions. Iran may retaliate, risking wider conflict. Despite supply risks, markets are well-stocked. India’s inflation and economy remain stable for now,
What is the biggest US crypto news today? JPMorgan says an attack on Iran could spike oil prices to $120, driving US CPI inflation to 5%.
The latest military attack on Iran by Israel has tanked stock markets and pushed up oil prices, but most asset managers think the impact on the U.S. economy and markets will be temporary as long as the conflict does not escalate further.
The main transmission channel from this specific geopolitical risk and FX is the price of oil, which has rallied around 8% since the Israeli strike. In other conditions, the DXY rally would likely be much larger than the roughly 0.
Crude oil prices spiked over 10 percent on June 13, marking their steepest weekly rise since 2022 as Israel conducted strikes on key Iranian installations.