"Financial markets are set for another shock of volatility following fresh strikes in Iran. While risks of conflict erupting again were bubbling given the US troop build-up in the Gulf, hopes had been pinned on fresh negotiations, and the decisive military action came sooner than expected. We are set to see another pile-on into assets perceived as safe havens such as gold, as investors look to shelter their money, given the course of the conflict is so unpredictable."
"Gold had already been hovering close to two-month highs, and demand is looks set to ramp up. Oil prices had already been creeping up as nerves became more frayed and they are set to shoot sharply higher given the risks of disruption to global oil supplies. Iran has the world's third largest crude reserves, but the nation also controls significant regional energy infrastructure."
Military strikes involving the United States, Israel, and Iran create significant market uncertainty, prompting investors to adopt risk-averse strategies. Capital flows shift toward safe-haven assets, particularly gold, which historically rises during Middle Eastern conflicts. Energy markets face particular vulnerability due to the region's critical role in global oil supply, with Brent Crude Oil prices expected to increase if Gulf shipping routes or production facilities experience disruption. Shipping routes near the conflict zone face heightened security risks, resulting in elevated shipping costs, trade delays between Asia and Europe, and increased insurance premiums. Financial experts recommend maintaining long-term portfolio strategies rather than reacting to short-term market fluctuations, while monitoring developments in the Gulf and potential Western government responses.
Read at London Business News | Londonlovesbusiness.com
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