Oil Prices Surge Amid Israel-Iran Conflict
Oil prices continued to rise on Monday as Israel and Iran engaged in missile strikes for a fourth consecutive day, with alarming threats of further attacks, heightening concerns about a prolonged conflict that could reignite inflation.
Gold prices also climbed back toward a historic peak due to a surge in demand for safe assets, while stock markets showed mixed results amid optimism that the conflict would not escalate across the Middle East.
Investors were preparing for crucial central bank meetings this week, particularly focused on the US Federal Reserve and the Bank of Japan, along with discussions with Washington about averting Donald Trump’s exorbitant tariffs.
Israel’s unexpected attack on Iranian military and nuclear facilities on Friday, resulting in the deaths of high-ranking commanders and scientists, caused crude oil prices to spike by as much as 13 per cent at one point, fueled by fears of supply disruptions in the region.
Tokyo finished up 1.3 per cent, supported by a declining yen. Hong Kong bounced back from initial losses, and Shanghai, Seoul, Singapore, and Wellington also saw gains.
Analysts cautioned that this price surge could trigger a new wave of global inflation, undermining the ongoing efforts by governments and central banks to control it and raising concerns about the effects on already vulnerable economies.
Gold, traditionally a haven during times of uncertainty and market fluctuations, increased to approximately $3,450 per ounce, nearing its all-time high of $3,500.
