Gold and oil are doing well after Israel and Iran trade blows

After the attack on Iran, according to American sources, the Israeli attack, oil and gold are becoming more expensive.

The cost of a barrel of benchmark Brent rose more than 4 percent amid concerns regarding supply chain disruptions (Iran is OPEC’s third-largest oil producer; if the conflict with Israel gains momentum, fuel supplies might indeed be disrupted).

“Oil prices briefly topped $90 a barrel before falling and gold neared all-time highs,” said Russ Mold, chief investment officer at AJ Bell. The price of gold did rise to $2,411.09 an ounce in early trading on Friday as investors flocked to the asset seen as a safe haven.

“Financial markets had a challenging week as tensions escalated in the Middle East following reports of bombings and a possible Israeli airstrike in Iran. This added to investor concerns following disappointing corporate earnings and recent comments from Federal Reserve officials,” market analysts IG said ahead of the weekend. .

Central banks will be closely monitoring further fluctuations in commodity markets, as rising oil prices might affect inflation and, as a result, the monetary policy of the European Central Bank.

Gediminas Simkus, Lithuania’s ECB spokesman, said geopolitical turmoil, particularly the escalating conflict between Israel and Iran, might lead to the cancellation of the European Central Bank’s planned rate cut in June.