The Israel-Hamas War dominated the key commodity markets in the past week. Oil prices soared, while gold benefited from the safe-haven flows. Investors’ risk appetite has stabilized today as they watch the efforts to contain conflict.
USOIL On Friday, the stock price rose by nearly 6% and gained 5.9% for the week amid concerns that the conflict between Israel & Hamas could intensify. UKOIL Traded at $90.89 The price of oil has dropped today. Investors are currently watching the efforts to contain the conflict and the markets do not price in the risks of an escalation which could threaten supply.
Then, there is still the International Energy Agency warned last week that “markets will remain on tenterhooks as the crisis unfolds”. JPMorgan warned that the supply of oil could be affected if US strict restrictions on Iranian exports were imposed, or if there were to be disruptions in the Strait of Hormuz due to the conflict. Iran officials suggested that an attack on Gaza might prompt other militants to join the conflict. In this context, fears that oil would hit Prices of $100 per barrel are rising again.
Gas Futures US prices dropped today to their lowest level since over a year.