On Friday, the markets were shaken by the possibility of an attack by Iran on Israel. Reports suggested that the attack could happen within the next few hours or days, and US intelligence authorities have also indicated the likelihood of it occurring. This news led to nervousness in both the oil prices and stock market, with oil prices rising sharply in reaction to the information.
In response to the escalating situation, Israel has instructed its citizens on what to do in case of an attack. President Joe Biden has expressed his expectation of Iran striking Israel. The price of Brent crude increased from just over $90 to over $92 on Friday afternoon but fell back to around $90 in the evening. The S&P500 index fell by 1.46 percent, while the Vix index, which measures market volatility, rose by around 25 percent, the largest single daily movement in over two years. Interest rates on government bonds fell slightly, with US and German rates decreasing. The US dollar rose by 0.6 percent and gold prices also saw an increase due to uncertainty surrounding potential attack’s ripple effects on various financial markets.
