Brent oil touches $ 70 a barrel in the face of escalating tension in the Middle East

Tension in the Middle East continues to develop and, consequently, the costs of uncooked supplies equivalent to gold and oil proceed to rise strongly. Brent crude, reference in Europe, got here to the touch the 70 {dollars} the barrel for the first time for 3 months at the time that gold stands close to highs of seven years in the past, about $ 1,570 an oz..

The 'black gold' skilled its first rebound final Friday, with the information of the assassination of Iranian Basic Qassem Soleimani by the United States. The North American nation carried out an air assault at the Baghdad (Iraq) airport led by the US president, Donald Trump himself.

That day, West Texas oil, a benchmark in the US, exceeded $ 63 a barrel, highs of Could final yr. At the similar time, Brent, a reference in Europe, scored $ 69, excessive at the finish of September.

The Brent barrel touched this Monday the 70 {dollars}, ranges that failed to succeed in for 3 months, though it closed at 68.90 euros with a rise of 0.44%.

West Texas additionally skilled revaluations of 0.3% in value, which stood at $ 63.27 a barrel.

Diego Morín, an analyst at IG Spain, already warned on Friday that if he continued “the enhance in tensions between Tehran and Washington”, he couldn’t “rule out additional will increase in oil.”

Trump launches extra threats

And so it has been throughout the weekend. In the final two days each the United States and Iran have raised the tone.

The Arab nation has introduced the finish of the restrictions on uranium manufacturing and enrichment agreed in the nuclear settlement signed in 2015, which Washington unilaterally deserted in Could 2018.

For his half, Trump has warned by way of his private Twitter account (his regular channel of communication) that the US will assault on 52 high-level Iranian targets if the Persians make “extra threats.”

“We’ll act very quick and laborious. America doesn’t need any extra threats,” the head of the United States and the US authorities tweeted.

Gold, in highs of 2013

In the meantime, gold, one of the largest refuge property in the world, continues to extend its value equally this present day. As we speak exceeds $ 1,570 per ounce, ranges that had not reached since February 2013, that’s, nearly seven years in the past.

“The query now could be whether or not the rally of the refuge property can be momentary or if these can be saved up ”

David Lafferty, chief market strategist at supervisor Natixis IM, stated in a remark Friday that the response in the markets to the new clashes between the US and Iran had been “guide”.

“The query now could be whether or not the rally of the refuge property can be momentary or if they may stay up, “he stated.

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