The rising war tensions between Iran and Israel are fueling a new world resource narrative. The war tensions are igniting a new crisis ahead, with oil, stocks, and crypto prices touching new highs.
With stocks and crypto verticals portraying a deflated stance post-battle announcement, crude oil prices can particularly suffer the most, with predictions of it reaching $100.
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In a counter-strike, the Republic of Iran announced a retaliatory war on Israel. On Saturday last week, Tehran led the bulk of guided missile attacks on Israel, destroying the Israeli military bases in its wake. The attack, which was initially spurred to take revenge on Israel for destroying the Iranian embassy in Syria, has now adopted a serious outlook with the potential to disrupt the global economies.
With the US economy already in trouble, the ongoing war tensions between Iran and Israel have further ramped up the economic meltdown. The US economy now stands at a precarious threshold, where it could easily spiral out of control.
After the war announcement, the stocks of global US-centric firms dropped to new lows, wiping away millions worth of gains within 24 hours.
“The Dow Jones Industrial Average (.DJI), opens a new tab fell 248.13 points, or 0.65%, to 37,735.11, the S&P 500 (.SPX), opens a new tab lost 61.59 points, or 1.20%, to 5,061.82, and the Nasdaq Composite (.IXIC), opens new tab lost 290.07 points, or 1.79%, to 15,885.02. The S&P 500 is now down 2.64% over the past two sessions; it’s the biggest two-day drop since early March 2023. The index also closed below its 50-day moving average, a technical support level, for the first time since Nov. 2.” Reuters reported.
Similarly, the war mayhem penetrated the cryptocurrency market, triggering massive liquidation. The liquidity crack resulted in Bitcoin plunging to new lows, trading at $63K, with altcoins and meme currencies falling apart and hitting ground zero.
The Crude Oil Crisis: The Most Pressing Issue
War tensions are now inching toward other sectors, primarily hampering the US economy’s energy verticals. Anticipations concerning oil prices breaking new price ceilings have already started to gather pace, with new predictions stating that oil can suffer the most of all three verticals.
Since Iran helms major oil production verticals, responsible for exporting nearly 1.5 million barrels a day, an unprecedented attack on the nation can trigger crude oil mayhem, sending its prices to break all records.
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“Any attack on oil production or export facilities in Iran would drive the price of Brent crude oil to $100,” said Andy Lipow, president of Lipow Oil Associates.”