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News Topical, Digital Desk : The fear of the war starting between Israel and Iran and its long duration has completely changed the market environment. The stock markets have fallen. The dollar and crude, which are facing constant pressure, have changed their direction. Out of these, the movement of crude oil has been surprising for the market. Amidst the fears of war escalating between Iran and Israel, investors have become active to protect their investments and the demand for assets that are considered safe havens has increased. The effect of which is visible in everything from the dollar to gold.
Amidst the changing circumstances, the dollar index rose by 0.22 percent to reach 98.14 on Friday. The dollar index was at a three-year low a day earlier. Israel has confirmed "targeted military action" against Iran's nuclear and missile programs. Prime Minister Benjamin Netanyahu said that this campaign will continue until the threat is completely eliminated. In response to this attack, Iran also carried out drone and missile attacks on Israel. After this, Iran also fired ballistic missiles on Friday. Some of these have caused damage in Israel. However, most of them have been thwarted by the air defense system. At the same time, Iran has indicated that it will continue the attacks.
Amidst the changing conditions, the dollar is once again being seen as a "safe haven". Whenever the global crisis deepens, investors look for safe options to avoid risk and prefer the dollar. In a CNBC report, ING currency experts said that the news of the attack gave the weakened dollar an opportunity to recover. He further said that now investors are keeping an eye on the increasing tension in the Middle East and the possible rise in oil prices due to this. At the same time, the effect of this tension was not limited to the dollar. There was also a tremendous jump in the prices of crude oil and gold. Gold, which is traditionally considered a safe investment, reached its highest level in nearly two months on Friday. Spot gold prices rose 1.4 percent to $ 3,431.09 an ounce, while the price of futures for August delivery jumped 1.5 percent to $ 3,452.70 an ounce. The crude oil market saw the most reaction. Investors are worried about the possibility of retaliation from Iran and supply disruptions. US West Texas Intermediate (WTI) crude rose by a sharp 7.2 percent to reach close to $ 73 a barrel, while Brent crude jumped 7 percent to $ 74.21 a barrel.
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