By John Meyer, consultant in financial affairs – Eurasia Business News, October 1, 2024. Article n°1246.

Major stock indexes in the United States falled today while oil prices surged significantly following Iran’s missile attack on Israel, after Tsahal ground forces entered Lebanon. This geopolitical event has heightened concerns about stability in the Middle East and its potential impact on global oil supplies.

Indexes fell. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all traded lower, with the Nasdaq down around 2%.

Despite the selloff, analysts noted that the markets were “unnerved but not yet panicked,” indicating a cautious approach among investors as they assess the implications of the conflict

Crude oil rose. Brent crude, the international benchmark, was up around 2.5%.

Apple shares weighed on indexes. The iPhone maker was down around 3.3%.

Treasury yields fell. The benchmark 10-year yield dropped, after falling more than half a percentage point in July through September.

Read also : Gold : Build Your Wealth and Freedom

European government bonds rallied, after eurozone inflation fell to 1.8% in September, from 2.2% in August, below the central bank’s target for the first time in more than three years.

Oil Price Surge

Significant Increases: Oil prices jumped by over 5%, marking the highest levels seen in nearly a year. West Texas Intermediate (WTI) crude approached $72 per barrel, while Brent crude stabilized above $75 per barrel.

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Geopolitical Concerns: The surge in oil prices is attributed to fears that ongoing conflicts could disrupt oil supplies from the region. Iran’s missile barrage has exacerbated these worries, especially given Iran’s role in global oil production, contributing around 4% of the world’s supply.

Inflation Implications: Economists have noted that rising oil prices could lead to increased inflation rates. A typical 5% rise in oil prices correlates with a 0.1 percentage point increase in inflation rates in advanced economies like the U.S.

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© Copyright 2024 – Eurasia Business News. Article no. 1246