The decision to keep rates high by the Federal Reserve is affecting international markets.
The prices of Petroleum They operated stable during the day, with slight falls in crude oil Brent and West Texas Intermediate (WTI)after fears about global economic forecasts outweighed current geopolitical tensions.
This Tuesday, despite the announcement of USA on future economic sanctions Iran after his attack on Israel, Brent crude futures closed down 8 cents, or 0.09%, at $90.02. In turn, WTI in the United States for May closed the session with a decrease of 5 cents (0.06%) to 85.36 dollars per barrel.
Jerome Powell, Chairman of the Federal Reserve (Fed)noted that the US central bank may have to keep interest rates higher for longer than expectedbased on the “lack of further progress” this year towards the 2% inflation target.
“High interest rates are killing the marketssince it seems that the Fed is stuck in the mud, while the economy continues to swell,” he shot in this regard Tim Snydereconomist at Matador Economics.
Iran’s attack on Israel was less than what the markets expected
On Friday, Brent rose to $92.18, its highest level since October, on latent fears that Iran would respond to the attack earlier this month on its embassy complex in Damascus (Syria). However, prices retreated on Monday after Iran’s attack on Israel turned out to be less harmful than anticipated.
In this context, the economic challenges that the United States and the world in general will have to face continue to add more pressure on this market, even as the US Treasury Secretary Janet Yellenconfirmed that his country intends to sanction Iran in the coming days following the attack, in an attempt to reduce its ability to export crude oil.
Source: Ambito
