Growing tensions between Iran and Israel are fueling a new narrative over global resources. War-related tensions spark another coming crisis, with oil, stock and crypto prices hitting new highs.
While stocks and crypto verticals are showing a deflated position following the battle announcement, crude oil prices may particularly suffer the most, with predictions that it could hit $100.
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In a counterattack, the Republic of Iran announced a retaliatory war against Israel. Last Saturday, Tehran carried out the majority of guided missile attacks against Israel, destroying Israeli military bases in its wake. The attack, which initially aimed to take revenge on Israel for the destruction of the Iranian embassy in Syria, has now taken on a serious outlook, with the potential to disrupt global economies.
With the U.S. economy already struggling, ongoing war tensions between Iran and Israel have further worsened the economic crisis. The U.S. economy now finds itself at a precarious threshold, where it could easily spiral out of control.
After the war was announced, shares of U.S.-centered global companies fell to new lows, erasing millions of gains in 24 hours.
“The Dow Jones Industrial Average (.DJI), opens in a new tab, fell 248.13 points, or 0.65%, to 37,735.11, the S&P 500 (.SPX), opens in a new tab, lost 61.59 points, or 1.20%, to 5,061.82, and the Nasdaq Composite (.IXIC), opens in a new tab, lost 290.07 points, or 1.79%, to 15,885.02 . The S&P 500 is now down 2.64% over the last two sessions; this is the largest two-day decline since early March 2023. The index also closed below its 50-day moving average, a technical support level, for the first time since November 2. Reuters reported.
Similarly, the chaos of war entered the cryptocurrency market, triggering a massive sell-off. The liquidity crack sent Bitcoin plunging to new lows, trading at $63,000, with altcoins and meme coins crashing and reaching zero.
The Crude Oil Crisis: The Most Urgent Issue
War-related tensions are now spilling over into other sectors, primarily hampering the energy verticals of the U.S. economy. Expectations of the new oil price caps being breached have already started to pick up, with new forecasts indicating that oil could be the hardest hit across all three verticals.
Given that Iran leads major oil production sectors, responsible for exporting nearly 1.5 million barrels per day, an unprecedented attack on the country could trigger crude oil chaos , breaking its prices to all records.
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“Any attack on Iran’s oil production or export facilities would drive the price of Brent crude oil to $100,” said Andy Lipow, president of Lipow Oil Associates.
reference: watcher.guru