The Asian and European marketsand the prices of Petroleum They were beginning to moderate their reaction to the initial shock of the day at the military response of Israel to Iran for the weekend attack.
Israel launched an attack against Iranian territory in the early morning, more precisely in the province of Isfahanheart of Iran’s nuclear program, which was notified in advance to USA. The explosions, these sources assured, respond to the Iranian aggression against Israeli territory last weekend.
Although information on the scope of the Israeli offensive is still unclear, Iran dismissed a warlike reaction to it and mentioned that it involved some drones that did not cause significant damage or human casualties.
The greater instability in the face of initial fears of an escalation in Middle East was registered in the Petroleumwith the Brent and the West Texas Intermediate (WTI)occasionally shooting up more than 3%, exceeding $90 per barrel for the reference crude oil in Europe and the one based on Ancap in its imports in Uruguay.
After benchmark contracts rose, Brent futures were down 46 cents, or 0.5%, at $86.65 a barrel by 1015 GMT, while the most active West Texas Intermediate contract was down 34 cents. cents, or 0.4%, to $82.39. “The events of last week seem more a sign of their willingness to act than an actual attempt to incite a war. For markets, this is the best possible scenario,” said Joshua Mahony of Scope Markets.
Asian stock markets have been trading with drops of up to 3%, while in Europe, the main indices are moving with moderate losses, reported El Economista. Similar movements anticipated Wall Street.
Investors, as usual in a context of geopolitical tension and uncertainty, take refuge in the gold. The metal surpassed its all-time highs above $2,400 in the moments after the Israeli attack.
The markets have surprised with their reactions to the escalation of tension between Israel and Iran throughout the week. On Monday, the first business day after Tehran launched a direct attack on Iranian soil for the first time with a hail of missiles and drones on Saturday, Brent oil and WTI closed lower. For analysts, it was proof that investors had priced in the Iranian offensive in previous rallies.
During the following days, the biggest uncertainty for the market was how Israel would respond, but assuming that pressure from the United States and Europe to do so on a limited basis would work.
Source: Ambito
