Attacks on Iran raise concerns about disruption of supplies through the Strait of Hormuz. Oil may jump above $100 and gold will regain its reputation as a safe haven.
Analysts expect safe asset prices to rise and oil prices to rise above USD 100 (EUR 84.71) per barrel (159 liters) after markets open on Monday (March 2) in response to the US-Israeli attacks on Iran. The immediate market reaction is fairly predictable, with safe-haven assets such as gold likely to rise and oil prices also likely to rise on fears of supply disruptions, said Christopher Wong, an analyst at Singapore’s OCBC bank. The sector that will see growth on Monday is obviously energy, said Nick Ferres from the Singaporean investment company Vantage Point Asset Management. He added that gold will also become more expensive. TASR informs about it based on a Reuters report.
If Iran manages to disrupt shipping through the Strait of Hormuz, it could affect more than 20% of the world’s oil and liquefied natural gas (LNG) flows, noted energy analyst Saul Kavonic of MST Marquee. That could push oil prices into triple digits and LNG prices could retest the record highs of 2022, he said.
“A complete long-term closure of the Strait of Hormuz is unlikely. But even a partial interruption of flows, especially since some tankers will avoid the region, could lead to the disruption of the transport of several million barrels of oil per day, which would lead to an increase in the price of oil above $100,” Kavonic added.
