Does US attacks increase the price of oil on Iran? Investors are shattering for uncertainty

Immediately after the announcement, he hoped that American participation was likely to have a possible bid for a sales and potential bid for dollars and other safe-heaven assets when the dollar started, but also said that there was a lot of uncertainty during the conflict.

Mark Spindel, Chief Investment Officer of Potomac River Capital, said, “I think the markets are going to be worried in the beginning, and I think the oil will open more.”

“We have no harm and it will take some time. Even though they have described it as ‘done’, we are engaged. What comes next?” Spindle said.

He said, “I think uncertainty is going to blank markets, as now Americans are going to be exposed everywhere. It is going to increase uncertainty and instability, especially in oil,” he said.

However, Spindel said that there was time to digest the news before the opening of the markets and he said that he was arranging to talk to other market participants.

Oil prices, inflation

An important concern for markets will be focused on oil prices in the Middle East and thus the potential impact of development on inflation. Increase in inflation can reduce the confidence of the consumer and reduce the possibility of deducting near-term interest rate.

Jack Ablin, Chief Investment Officer of Cresset Capital, said, “It adds a complex new layer of risk, which we have to consider and pay attention.” “It is definitely an impact on energy prices and potentially inflation.”

Oxford said in the note that in the most severe case, global oil prices rise to around $ 130 per barrel, which by the end of this year increases US inflation near 6%.

Oxford said, “Although the price shock essentially reduces the consumer spending due to the hits, the scale of increase in inflation and the possibility of the effects of the second round of inflation is likely to waste any opportunity to cut any opportunity in the US this year.”

In the comments after the announcement on Saturday, managing partner Jamie Cax in Harris Financial Group agreed that oil prices would be likely to spike on initial news. But Cox said he expected prices up to a possible level in a few days as the attacks could seek Iran for a peace agreement with Israel and the United States.

Cox said, “With this performance of force and the total destruction of his nuclear capabilities, he has lost all his leverage and possibly hits the escape button for a peace deal,” Cax said.

Nevertheless, any pullback in equity can be fleeting, telling history. During the previous major examples of the Middle East tension, including the 2019 attacks on the 2003 Iraq invasion and Saudi oil facilities, the stocks initially stocked, but were recovered to do high trade in the coming months soon.

According to data from Vesabash Securities and Capic Pro, on average, the average, S&P500 slipped 0.3% in three weeks in three weeks, but average was 2.3% more in two months after the conflict.

Dollar crisis

Increase in conflict may lead to mixed implications for the US dollar, which has fallen amid concerns to reduce American extraordinary this year.

Analysts stated that in the event of a direct involvement US in the Iran-Israel War, the dollar could initially benefit from a security dialect, analysts said.

“Do we see a flight for safety? This will reduce the signal and strengthen the dollar,” said the main market strategist Steve Sosonic at IBKR in Greenwich, Connecticut. “It is difficult to imagine that stocks are not reacting negatively and the question is whether it will depend on the Iranian response and what oil prices rise.”