If the Strait of Hormuz is disrupted, oil prices could drop to $130.
Gold price rises above $2,400 due to preference for safe assets
Bitcoin plummets due to risk averse demand
Photo = REUTERS Tensions in the Middle East are on the rise as Iran carries out retaliatory attacks against Israel. On Wall Street in New York, concerns are growing about the rise in international oil prices and the impact it will have on the global economy. In particular, with inflation in the United States not slowing down, there are even predictions that the inflation rate could rise again if oil prices rise. Photo = Getty Image Bank Gold prices rose as the preference for safe assets grew stronger due to the Iran attack. On the other hand, the price of cryptocurrency, a representative risk asset, once plunged.
“Brent crude could go to $130”
Photo = AP The international oil price market and the New York stock market had already been reflecting the price crisis in the Middle East since last week. On the 12th, at the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude oil for the May contract rose to $87.67 a barrel at one point during the session and ended trading at $85.66, up $0.64 (0.75% ) from the previous trading session.
The price of June Brent crude oil rose to $92.18 a barrel during the day, and the closing price was $90.45, up $0.71 (0.8%). It has been about five months since the end of October last year that the price of Brent crude oil futures exceeded $92.
Experts predict that oil prices will rise further than now. “If the situation gets out of control and there is a disturbance in the Strait of Hormuz, the price of Brent crude oil could soar to $120 to $130 a barrel,” said Bob McNally, president of energy consulting firm Rapidan Energy. They were concerned about the possibility that the United States could intervene directly in the conflict between Israel and Iran.
The Strait of Hormuz is a key waterway through which 18 million barrels of oil pass through the Persian Gulf every day. Lepidan Energy put the possibility of such chaos occurring in the Strait of Hormuz at 30%.
If this rise in oil prices continues, it is likely to have an impact on global inflation. In particular, in the United States, the growth rate of the consumer price index (CPI) from January to March this year exceeded expectations, and the market’s expectation of an interest rate cut by the US Central Bank (Fed) was also delayed from June to June. September.
The International Monetary Fund (IMF) was concerned about the repercussions of the expansion of the conflict in October last year, when the war between Israel and Hamas (a Palestinian armed political faction) was in the early stages when oil prices rose by 10% . , global production will decrease by 0.15 percentage points and inflation will decrease by 0.4 percentage points Expected to rise.
Gold price more than $2,400
Photo = EPA As demand for safe assets increases, the price of gold in the international market is above the $2,400 level per ounce for the first time ever. On the 12th (local time), the price of gold rose to $2,448.8 an ounce during the day, breaking the all-time record in just one day. The price of gold was above the $2,100 level for the first time on the 4th of last month, and rose above the $2,300 level on the 3rd of this month, a month later. Mohamed El-Erian, an adviser at Allianz Group, said, “Due to concerns about inflation in the United States, many investors consider gold to be a better hedge against geopolitical risks than US Treasury bonds.” Not related to the content of the article / Photo = Getty Image Bank On the other hand, cryptocurrency plunged, a risky asset. According to Coinbase, a virtual currency exchange in the United States, on the 14th (local time), as of 1:30 am, it was worth $64,298, down $5.26 from 24 hours ago. Bitcoin, which had been moving in the $66,000 range due to the possibility of an air strike from Iran, plunged more than 7% on the news of the start of the air strike, falling below the $62,000 level. It has been about 20 days since the 24th of last month that Bitcoin fell below the $62,000 level.
New York = Reporter Park Shin-young
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