Hong Kong
Cnn
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Oil prices jumped late Sunday in Wall Street’s first reaction to American strikes on three Iranian nuclear installations on Saturday evening, a major escalation of the Iran-Israeli conflict.
US oil contracts jumped 2.7% to around $ 75.80 per barrel to 930 pm he. Brent Futures, the global reference for oil prices, increased by 2.44%, reaching $ 78.88 per barrel.
US stock contracts have dropped in response to attacks. Dow Futures dropped by 175 points, or 0.4%. The term contracts on S&P 500 dropped by 0.4%, while the term contracts on the NASDAQ dropped by 0.5%.
The US dollar, however, increased by 0.3%, an encouraging sign after the greenback has dropped after the Trump administration has set up historic prices on foreign imports. The dollar, widely called the global reserve currency, tends to rally in time of discomfort and world conflict, but some market observers wondered if it would happen within the framework of Trump’s “America” policies.
Israeli actions were reinforced on Sunday by the news, because traders thought that attacks could reduce the risk that Iran represent a nuclear threat against the Jewish state. Israeli actions have increased to record heights. Tel Aviv 125 climbed 1.8% to close to 2,919.62. The TA-35 won 1.5% to end at 2,877.78, a summit of all time.
The United States produces an average of around 13.4 million barrels per day. Brut oil stocks have increased more than 200 million barrels since the beginning of January and OPEC + recently announced its intention to increase production, but there are more and more concerns that Iran could close the Hormuz Strait or put pressure on oil and trade in the region.
Economists are particularly concerned about reprisals that could disrupt the oil flow, which is strongly depended on the strait. Any net bondage of oil prices could potentially trigger higher inflation for the American economy.
In 2024 and the first quarter of 2025, more than 25% of maritime oil trade crossed the Strait, according to the US Energy Information Administration. The United States has imported around 500,000 barrels per day via the Strait, representing 7% of the total imports of crude oil and condensates in the United States.
John Liu from CNN has contributed the reports.