Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Stock markets are sliding, and the oil price has surged, after Israel launched an attack on Iran overnight, targeting nuclear facilities, military commanders and Iranian scientists.
The attacks, a major escalation of tensions in the Middle East, have sent investors dashing into safe-haven assets, fearing it could spiral into a wider conflict.
Brent crude oil surged by over 10% when news of the attacks broke, reaching its highest level since January. It’s now up 8% at $73.52 per barrel, which would be the biggest daily rise since 2022.
Oil was driven higher by worries that supplies from the region could be disrupted, if the conflict escalates.IpekOzkardeskaya, senior analyst atSwissquoteBank, suggests that oil could push higher, perhaps to $90–$100 per barrel, in that scenario, saying:
Benjamin Netanyahuhas indicated that the Israeli operation will take “many days”, and warned that “Israeli citizens may have to remain in sheltered areas for lengthy periods of time.”
3pm BST: US consumer confidence report
There is a “strong risk-off move” in several asset classes today, with the focus now shifting to what form Iran’s retaliation might take, reportsJim Reid, market strategist atDeutsche Bank.
He says:
Gold is heading towards a record high, as investors seek out safe-haven assets.
The spot price of gold has jumped 1% to $3,418 per ounce, towards the all-time peak of $3,500/oz set in April.
Derren Nathan,head of equity research atHargreaves Lansdown,says:
European shares are set to open sharply lower in under 30 minutes time.
Reuters has the details:
Shares across Asia-Pacific stock markets fell sharply after Israel launched its military operation at Iran’s nuclear facilities.
Japan’sNikkeidropped 1%, South Korea’sKOSPIhas lost 0.85% and China’sCSI300is down 0.66%.
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Stock markets are sliding, and the oil price has surged, after Israel launched an attack on Iran overnight, targeting nuclear facilities, military commanders and Iranian scientists.
The attacks, a major escalation of tensions in the Middle East, have sent investors dashing into safe-haven assets, fearing it could spiral into a wider conflict.
Brent crude oil surged by over 10% when news of the attacks broke, reaching its highest level since January. It’s now up 8% at $73.52 per barrel, which would be the biggest daily rise since 2022.
Oil was driven higher by worries that supplies from the region could be disrupted, if the conflict escalates.IpekOzkardeskaya, senior analyst atSwissquoteBank, suggests that oil could push higher, perhaps to $90–$100 per barrel, in that scenario, saying:
Benjamin Netanyahuhas indicated that the Israeli operation will take “many days”, and warned that “Israeli citizens may have to remain in sheltered areas for lengthy periods of time.”
3pm BST: US consumer confidence report