Markets worldwide are being shaken by escalating tensions in the Middle East. In Asia, stocks are on the decline, and US futures contracts exhibited a negative trend on Monday morning. Interestingly, these developments had almost no impact on cryptocurrencies.
Bitcoin (BTC) and Ethereum (ETH) saw only a 0.2% drop in value over the past 24 hours, with many altcoins experiencing similar losses. The CoinDesk Market Index (CMI) showed a 0.19% drop during this period. Similarly, Asian stocks started the week with a decline.
Israel-Hamas Tensions Could Trigger a Rise in Oil Prices
In the Middle East, conflicts between Israel and Hamas have begun to intensify. The risk of this conflict spilling over to neighboring countries like Iran is harming the oil markets. Analysts are concerned that in the event of heightened tensions between Israel and Iran, following the weekend attack by Hamas, there could be disruptions in oil trade through the Strait of Hormuz.
According to a report by CoinDesk, Josh Young, the Chief Investment Officer of energy investment firm Bison Interests, stated that if the US imposes sanctions on Iranian exports, significant effects could be seen in the oil market. Young suggested that an approximate $5 increase in oil prices is possible.
Middle East Alarm in the Markets: Dollar and Gold Also Affected!
This ripple effect continues. WTI Crude Oil has seen a 16% increase over the past three months and gained 3.23% in recent days. Brent Crude Oil has risen by 3.5%.
The dollar and gold are also experiencing similar upward trends. The Istanbul Stock Exchange started its first trading day with a sharp decline following the rising tensions. The BIST 100 index dropped by 1.9% at the opening. The Dollar/TL exchange rate tested the 28 level.
Gold, often seen as a safe haven, rose by 1%, surpassing $1,850 per ounce. It remains uncertain how long the markets will react this way, but experts indicate that if the war continues, it could sharply reflect on the dollar and gold prices.
