U.S. markets closed lower on Tuesday due to geopolitical tensions, with energy & defense stocks rising. Asia markets mixed, Europe flat, oil prices dip.
While crude oil transport has not been affected directly, concerns remain that Iran could move to block the Strait of Hormuz, a crucial passage for oil tankers.
Brent crude futures rose 1.4% to $74.24 per barrel while U.S. West Texas Intermediate crude futures gained 1.2% to $71.06 per barrel, as of 5.03 am ET.
With tensions continuing to flare in the Middle East, the global energy supply is on tenterhooks, with Israel hitting Iran where it stands to hurt the most.
According to the data published by OPEC, the cartel increased its production output by 154,000 barrels a day, despite announcing plans to improve it by 411,000 barrels during the month.
Market summary: US markets closed lower on Friday due to rising Iran-Israel tensions. Most sectors declined but energy stocks rose. Asian, Eurozone, and US futures are up while oil prices dip.
U.K.’s Prime Minister Kier Starmer said the country was not involved in Israel's military action but declined to say whether Britain would help defend Israel if Iran retaliates.
Goldman Sachs analysts said in a recent note that the conflict could result in Iran’s 1.75 million barrels per day supply being taken out of the market.
Middle East conflict boosts demand for 'crisis alpha' ETFs in defense, energy, inflation, and cybersecurity sectors, as investors fear market volatility.
Tensions in the Middle East and Trump's threats to Iran are causing uncertainty in global markets, leading to a shift towards safe-haven assets like gold and crude oil. Asian markets are also feeling the impact, with declines in Japan, Australia, India, China, and Hong Kong. In Europe, the STOXX 50, DAX, CAC 40, and FTSE 100 are all down. Oil prices surged over 7% after the strike and fears of supply disruption, while natural gas, gold, silver, and copper also saw price movements. U.S. futures are down over 1%, led by declines in the Dow Jones and Nasdaq 100. The dollar has gained against major currencies as investors seek safe havens.
Stocks end lower on Middle East tensions and skepticism over US-China trade deal, with most sectors declining. Economic data shows lower than expected inflation. Asia markets also down, led by losses in Japan and Australia. European stocks also lower, while oil and metal prices rise due to safe-haven demand. US futures and dollar decline.
