World weighs risks of Israeli retaliation
Bitcoin prices volatile; crude oil to spike; stocks may see losses
Financial markets will face the new week fretting about geopolitics with much riding on whether Iran’s unprecedented weekend strike on Israel triggers rounds of retaliation.
With investors already rattled by sticky inflation and the prospect of higher-for-longer interest rates, the escalation of the Middle East crisis is set to inject fresh volatility when trading resumes.
When Hamas attacked Israel in October, the biggest fear for many market participants was that Iran would ultimately be drawn into the fighting. Now as the conflict widens, many say oil could surpass $100 a barrel and expect a flight to Treasuries, gold and the dollar, along with further stock-market losses.
“Oil prices might spike at the opening, as this is the first time Iran struck Israel from its territory,” said Giovanni Staunovo, an analyst at UBS Group AG. “How long any bounce will last will also depend on the Israeli response.”
Bitcoin gave an early insight into market sentiment: The token sank almost 9% in the wake of the attacks on Saturday, only to rebound on Sunday and trade near the $64,000 mark.
NEW TRIGGER
ESCALATION of this crisis is set to inject fresh volatility in mkt
AS conflict widens, many say oil could surpass $100 a barrel
Iran launched armed drones and missiles against Israel, marking a new and more volatile phase of the Middle East conflict. The attack, in retaliation for a strike in Syria that killed top Iranian military officers, was the first time Iran has struck Israel from its soil.
Most of the more than 200 ballistic missiles, cruise missiles and attack drones fired by Iran were intercepted with the help of Israel’s allies before
IRAN launched armed drones and missiles against Israel
landing, Israeli military spokesman Daniel Hagari said early Sunday. He said the only impacts were a 10-yearold girl who was badly injured and