19 Apr 2024

Israel-Iran War: How Israel's attack on Iran will affect oil & gold prices

Oil and gold prices have increased in the international market after the news of Israeli missiles attack on Iran.

On Friday, the price of Brent Crude Oil in the Asian market increased by two and a half percent to reach $ 90 per barrel. Whereas the price of gold reached $2400 per ounce.

Meanwhile, the stock market indices of Japan, Hong Kong and South Korea collapsed.

Investors are keeping a close eye on Israel's retaliation. They believe that such conflict in the Middle East could affect the global supply of oil.

Due to this, economic activities may slow down in many countries. There is already tension in the Strait of Hormuz between Oman and Iran. This is a very important sea route.

The Strait of Hormuz is a narrow waterway between Iran and the Arabian Peninsula, connecting the Persian Gulf to the Indian Ocean. It is a strategically important sea passage for oil and gas trade, but also a potential target for political and military conflicts.

20 percent of the world's entire oil supply passes through this route. Iran is the seventh largest oil supplier country in the world.

Saudi Arabia, Iran, UAE, Kuwait and Iraq, members of OPEC, an organization of oil exporting countries, send most of their supplies abroad through this route.

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