How did Iran-Israel tension affect the markets? – Last Minute Economy News

Iran’s attack on Israel over the weekend with hundreds of kamikaze unmanned aerial vehicles, ballistic and cruise missiles made pricing difficult around the world.

Despite the upward trend in global equity markets that has been going on for months, selling pressure increased as inflation exceeded expectations in the USA, while the expansion of conflicts in the Middle East caused the risk perception to strengthen significantly.

Accordingly, while there were serious losses in value in the cryptocurrency markets, which operate on a 24/7 basis, the price of Bitcoin decreased by more than 10 percent at one point, falling to 60 thousand 600 dollars.

DEMAND FOR GOLD CONTINUES TO REMAIN STRONG

On the first trading day of the week after Iran’s attack on Israel, the ounce price of gold, one of the safe haven assets, increased by more than 1 percent compared to Friday’s closing, reaching 2 thousand 373 dollars, and then stabilized at 2 thousand 352 dollars as of 11:00.

The ounce price of gold, which broke the record by exceeding 2 thousand 432 dollars on April 12, completed the day at 2 thousand 344 dollars with a decrease of 1.2 percent due to the sales pressure from this level.

Analysts stated that after Iran’s retaliatory attack on Israel, concerns that Israel may respond and tensions may rise again still have an impact on investors’ decisions.

IT LOST 10 PERCENT VALUE IN 30 MINUTES

While sharp declines were recorded in the cryptocurrency markets that were open at the time of the news of Iran’s attack in the Middle East, the price of the largest cryptocurrency, Bitcoin, fell by 10 percent in 30 minutes. Bitcoin was trading below $62,000 when the attacks were officially confirmed.

However, Iran’s statement that the attack was sufficient for now and the USA’s statement that Israel had assured them that it would not take steps that would escalate tensions in the region, caused the risk perception to decline, albeit to a limited extent.

Following these developments, the price of Bitcoin stabilized above 66 thousand dollars.

While the one-month decline in the price of Bitcoin, which recorded its all-time high of $73,750 on March 14, exceeded 12 percent, the price of Ethereum, which ranks 2nd in terms of market value, lost 10 percent of its value after Tehran’s attacks. It fell below 3 thousand dollars. The price of Ethereum is traded at $ 3,245 as of 11:00 CET.

HOW WILL IT AFFECT OIL PRICES?

Following the news that the Iranian Revolutionary Guards detained a cargo ship linked to an Israeli businessman on Saturday, concerns that Iran may close the Strait of Hormuz to ship traffic are increasing, and it is stated that this tension may make oil pricing difficult for a while.

Analysts stated that it is not yet clear how much the situation in the region will escalate, and noted that risk premiums for investors may increase.

Emphasizing that instability in the Middle East is a potential situation that can negatively affect oil and gas prices, analysts reported that Israel’s response to Tehran’s attack could have a significant impact on oil prices, gold, stocks and crypto markets.

On the other hand, after the risk perception subsided, albeit limited, and the US oil stocks increased more than expected, the barrel price of Brent oil is traded at 88.8 dollars with a 0.8 percent decrease in the new week.

IRAN-ISRAEL TENSION

Israel carried out an air attack on Iran’s consulate building in Damascus on April 1. A total of 7 people from the Iranian Revolutionary Guards Army, including 2 generals, died in the attack.

Iran had announced that Israel’s consulate attack meant an attack on its country’s territory and that they would retaliate.

Israel also stated that it would respond to Iran’s attacks.

Iran launched an attack on Israel with hundreds of kamikaze unmanned aerial vehicles, ballistic and cruise missiles on April 13, and announced that some military targets were hit.

Israel stated that most of the attacks were prevented by air defense systems, but a missile hit a military base in the south.