- Analysts expect the prices of safe assets and oil to rise after the attacks on Iran.
- Gold is expected to rise in price and oil prices are expected to rise due to supply concerns.
- Disruption of transport through the Strait of Hormuz can affect more than a fifth of the world’s flows.
- Even a partial restriction of the strait can push oil above $100 per barrel.
Rising safe-haven asset prices and an increase in oil prices above USD 100 (84.71 euros) per barrel (159 liters) analysts expect after Monday’s (March 2) market opening in response to the US-Israeli attacks on Iran. The immediate reaction of the markets is quite predictable, safe assets as it is gold is likely to rise and oil prices may also 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 succeeded in disrupting shipping through the Strait of Hormuz, it could affect more than 20% of the world’s oil and liquefied natural gas (LNG) flows. recalled energy analyst Saul Kavonic from MST Marquee. That could push oil prices into triple digits and LNG prices could retest the record highs of 2022, he said.
“The complete long-term closure of the Strait of Hormuz is unlikely. But even a partial interruption of flows, especially because some tankers will avoid the region, could lead to to disrupt the transportation of several million barrels of oil per day, which would lead to an increase in the price of oil above 100 USD,” Kavonic added.
