After Iran attacked Israel in retaliation, oil prices dropped on Monday. Although it was trading lower, Brent crude—a crucial benchmark for oil prices worldwide—remained at $90 per barrel. Last week, Brent oil was close to a six-month high, and prices continued to surge as investors awaited Iran’s move. According to analysts, market participants will be watching global supply chains closely to gauge any impact the crisis may have.
Because many nations worldwide rely on oil as a raw material for various fuels, including gasoline and diesel, changes in oil prices may have far-reaching consequences. The rising costs of fuel and energy may account for a large portion of the increase in the cost of living over the last few years.
International markets will closely watch Israel’s response to the strike in the following days and weeks. At the weekend’s close, the price of Brent oil reached $92.18 a barrel, its highest point since October. However, by Monday, it had dropped to about $89.50. Following the market’s downward trend, the price of gold fell from its all-time high of $2,431.29 per ounce on Friday to $2,332.97 on Monday.
Energy policy expert Vandana Hari claims that, with oil prices decreasing, the market does not see any need to factor in any extra supply danger. A trader named Peter McGuire from XM.com, on the other hand, predicted that oil prices would jump in reaction to Israel’s move against Iran. April LaRusse, chief investment officer at Insight Investment, said that markets will remain flat until further data is available.
Investors in the Asia-Pacific region dumped their shares on Monday as they pondered the possible fallout from the strike. Additionally, the UK’s FTSE 100 market index fell somewhat. Investment director Russ Mould of AJ Bell said that the markets were relatively quiet at the start of the week but that investors are still apprehensive.
