Summary
- On the 17th, international crude oil prices surged more than 2% in early trading due to escalating Israel-Iran conflict and President Trump's warning.
- Gold, the quintessential safe-haven asset, has risen for six straight months amid concerns over Middle East conflicts, reaching as high as $3,422.65 per troy ounce.
- Conversely, key U.S. stock index futures—all S&P 500, Nasdaq 100, and Dow—showed declines.
After U.S. President Donald Trump urged people in Tehran, the capital of Iran, to "leave Tehran immediately," the global financial and commodity markets have been gripped by renewed anxiety. Oil prices started higher, and safe-haven gold also showed gains.
On the 17th, international crude oil prices rose more than 2% in early trading. August West Texas Intermediate (WTI) crude futures jumped 2.64% from the previous close to $72.11 per barrel, while the global benchmark Brent crude futures rose 2.21% to $74.85 (intraday). On April 13, when Israel launched a surprise airstrike against Iran, both WTI and Brent closed up around 7%, but on the next trading day, the 16th, as signs emerged that Iran was seeking to ease tensions, prices finished lower.
However, as Israeli and Iranian airstrikes continued and President Trump warned "leave Tehran immediately," markets turned volatile once again. Priyanka Sachdeva, senior analyst at Singaporean financial firm Phillip Nova, told Reuters that "the Israel-Iran conflict is still in its early stages, so investor sentiment is being influenced by war risks." She added, "With volatility rising ahead of the Fed's monetary policy decision meeting, oil prices are responding even more quickly." Bloomberg reported that oil producers have sharply increased their futures and options trading to hedge risks.
Gold, the representative safe-haven asset, also climbed. Gold futures continued to exceed $3,400 per troy ounce, and at one point reached $3,422.65. Bloomberg explained, "Fears that the conflict could spread across the Middle East pushed gold prices up about 4% last week," adding, "Gold is expected to extend its monthly rally for a sixth consecutive month through this month, marking the longest such run in 20 years." Conversely, the U.S. stock market took a hit. As of 3:30 p.m. Korea time, S&P 500 futures (-0.36%), Nasdaq 100 futures (-0.26%), and Dow Jones futures (-0.31%) were all in negative territory.
Han Kyung-je, journalist hankyung@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
