In a dramatic turn of events, the world witnessed a tumultuous day in the oil and stock markets following the recent attack on Israel by Hamas. The death toll soared past 1,000, leaving countless others wounded. The impact was immediate and profound.
Oil Markets in Disarray, Investors on Edge
The global oil market felt the tremors as West Texas Intermediate and Brent Crude, both crucial benchmarks, surged over 4% on Monday. Investors nervously speculated about the conflict’s potential to disrupt crude markets in the long term. Adding to the anxiety was the dwindling U.S. Strategic Petroleum Reserve, a vital supply source during crises. Over the past two years, 60% of the reserve had been depleted, straining the already tense relationship between the United States and Saudi Arabia.
Expert Predictions and Market Reactions
Amidst the uncertainty, experts voiced their concerns. James Iuorio, Director at TJM Institutional Services, shared his apprehension during a FOX Business interview. “I think oil is going back to $100 within the next couple of months,” he predicted, emphasizing the gravity of the situation. Meanwhile, Phil Flynn of Price Futures Group noted that the demand destruction people anticipated had not materialized yet. Oil majors like ExxonMobil and Chevron rallied in response to the market’s turbulence.
Israeli Resolve and Global Markets
In a passionate address, Israeli Prime Minister Benjamin Netanyahu affirmed his nation’s determination to overcome the crisis. “Israel didn’t start this war, but Israel will finish it,” he declared, vowing to make Hamas regret their actions. Despite the turmoil, U.S. stocks managed to bounce back, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all ending the session on a higher note. The U.S. bond market, however, remained closed due to Columbus Day observances.
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