Oil and gold prices rally after Israel's blitz in Iran

The spotlight is back on so-called safe haven assets, after the Israel's response to Iran, which resulted in the attack on a military base in Esfahan, while it would appear that nuclear sites are not at risk. A blitz that was not agreed upon by Israel with the United States and which alarmed Tehran, leading to the temporary closure of the airspace.

But Israel's counterattack did not leave the financial markets unscathed, hitting the commodities sector first and foremost gold and oiland then also the Asian and European stock exchanges.

Oil, fear is 90

Oil immediately jumped on news of the attack in Iran, once again reaching a value of $90 a barrel in the North Sea's highest grade. A movement justified by the importance that Iran has for the oil market, being the third largest OPEC producer after Saudi Arabia and Iraq.

The Brent future for June 2024 delivery went up to one maximum of 90.75 dollars per barrel, and then deflated to 87.62 dollars per barrel (+0.59%) when it became known that the military operation had not had serious damage or consequences. The US crude followed the same movement, with the contract for delivery in May reaching 86.28 dollars, before settling at 83.32 usd/b (+0.72%).

Gold in rally regains the 2,400 dollars

Gold also flew above $2,400 again, a new historical record, benefiting from its nature as a safe haven asset. The precious metal reached a high of 2,416.75 dollars and then fell again below the critical threshold at 2,381.14 dollars.

An increase that must essentially be attributed to precautionary issues, since the prospects of a more austere Fed this year have not favored the continuation of the precious metal's rally, with the prospect of “higher for longer” rates.

Nervous stock markets awaiting developments

After poor performance of Asian marketswith Tokyo closing heavily down by around 2%, the start of the European stock markets was not the best.

And although the alarm has partially subsided, the markets remain nervous, also in view of a weekend that promises to be as heart-pounding as the last one. The Milan stock exchange lost almost 1%, followed by Frankfurt which slipped by 0.88%, while Paris fell by 0.65% and London by 0.59%.