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Oil prices rose on Friday in the greatest step in more than three years when Israel’s air strikes against Iran in the region threatened the stocks and triggered a rush for safe assets from Haven.
In the early afternoon in Asia Brent Rohöl, the international benchmark rose 8 percent to $ 74.88 and the US Marker West Texas Intermediate rose by more than 8 percent to $ 73.67. Dealers were able to step into energy supply in one of the most important oil and gas production regions in the world with energy supply.
Michael Alfaro, Chief Investment Officer at Gallo Partners, a hedge fund that focused on energy and industry, said that the attack on the nuclear institutions of Iran was a “seismic escalation” in conflict.
“We stare down the barrel of a longer conflict, which almost increases oil prices,” he said.
Gold, an asset as a port, rose by around 1.2 percent to $ 3,427 per ounce during the Asian trading hours.
There are several risks for the energy sector from a new conflict.
The street of Hormuz, the narrow waterway that separates Iran from the Gulf States, is a line for around a third of the world’s oil supplies. Iran has repeatedly threatened to close it in the event of an attack.
Some of the world’s largest oil fields, also in Saudi Arabia and Iraq, are also within reach of the Iranian rockets and drones. In 2019 it was generally assumed that Iran was behind an attack on Saudi Arabian oil devices that briefly push the price of crude oil.
Qatar is also one of the world’s largest suppliers of liquid gas (LNG), and Hormuz has to cross his programs in order to achieve international markets in a time of close global stocks.
Helima Croft, a former CIA analyst that is currently on RBC Capital Markets, asked whether the latest strike was a limited military commitment, as was taken in autumn or whether Iran would target regional energy supply.
“The main question is whether Iran is trying to internationalize the costs of today’s measures by aiming at the regional energy infrastructure,” said Croft.
US President Donald Trump has previously undertaken to keep oil prices low to tame inflation.
After the full invasion of Russia in Ukraine, the bidet management released around 300 million barrels of crude oil from the US Strategic Petroleum Reserve (SPR), the world’s largest emergency stock to keep prices in check.
If the start of the oil is longer or the supply of the Middle East is disturbed, Trump could use the SPR, but in the past he has criticized the former President Joe Biden for this.
Traders are also looking for a reaction of the Opec+ group of oil producers. Saudi Arabia, one of the most powerful members of the group, condemned the attack of Israel on Friday.
The group in which the Iran is a member has increased production in recent months, but can be exposed to additional pressure from the Trump administration to open up the additional capacity to keep the markets well.
The shares in the Benchmark Nikkei 225 index fell by around 1.3 percent. South Korea’s Kospi and the Hang Seng in Hong Kong fell by 1.28 percent and 0.7 percent.
The price for Bitcoin fell by up to 3 percent on Friday in as service hours, which corresponds to a wide range of risk assets in the entire region.
The price of a Bitcoin dropped briefly to the level of 103,000 US dollars before it gathered slightly to 104,000 US dollars.
