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The stock market fell as oil prices continued to rise on Wednesday, against a backdrop of fears that the Iranian missile attack on Israel would escalate the conflict in the Middle East.
The price of Brent crude, the international index, was above $75 per barrel, while West Texas Intermediate crude was above $72, an increase of more than 3%.
Iran launched its second direct attack on Israel on Tuesday, launching 200 missiles in response to the assassination of its two allies, Hezbollah Secretary-General Hassan Nasrallah and Hamas political bureau chief Ismail Haniyeh.
Israeli Prime Minister Benjamin Netanyahu vowed that Iran would “pay” the price for its “big mistake,” and Tehran warned Wednesday that it would launch a larger attack if targeted.
The attack caused oil prices to rise by up to 5% on Tuesday.
“Oil prices are now related to the conflict in the Middle East,” said Fouad Razaqzadeh, an analyst at City Index and Forex.com.
He said, “The extent of Israel’s possible response to Iran will affect the effects of geopolitical risks on the markets. “
He said prices could fall if Israel makes a “thoughtful” response and bypasses Iran’s nuclear facilities.
Razaqzada explained in a note, “If Israel drags the United States into their battle, or if they respond with a bigger attack this time, beware of a crazy increase in oil prices.”
Dan/Lil/Bq
2024-10-02 14:54:32
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