US strikes on Iran threaten oil price spike, global market jitters
US strike on Iran’s nuclear facilities could send oil prices soaring and unsettle global financial markets. analysts warn, as investors gauge the broader economic impact of the escalating conflict.
Early movements in Middle Eastern stock markets, which operate on Sundays, reflected a cautious optimism, despite Iran stepping up its missile attacks on Israel following the sudden involvement of the United States in the crisis.
Market experts suggested that once major global exchanges reopen, the heightened US role in the conflict could spark a stock selloff, alongside a surge in demand for safe-haven assets like the US dollar. However, uncertainty remains high.
“Markets will likely react nervously at first, with oil prices expected to climb,” said Mark Spindel, chief investment officer at Potomac River Capital. “This escalation raises overall risk and market volatility, particularly in the energy sector, as American interests now become directly exposed.”
Cryptocurrency markets offered a glimpse of investor anxiety. Ether, the second-largest digital currency, fell 8.5% on Sunday, extending its decline to 13% since Israel’s initial strikes on Iran began on June 13.
In contrast, most Gulf stock markets appeared relatively steady. Key indices in Saudi Arabia, Qatar, and Kuwait were either marginally higher or flat, while Israel’s Tel Aviv stock exchange continued to perform strongly, reaching record highs.
Meanwhile, global oil prices have already seen significant movement. Brent crude, the international benchmark, has surged by up to 18% since June 10, peaking at nearly $79.04 per barrel on Thursday, its highest level in nearly five months.
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