Stock markets around the world are falling and crude oil prices are up 7% after the U.S. and Israel attacked Iran over the weekend.
West Texas Intermediate (WTI) crude oil, the American standard, is up 7.27% to $71.83 U.S. per barrel. Brent crude oil, the international benchmark, is up 7.34% and trading at $78.21 U.S. a barrel.
At the same time, stock markets around the world are in the red following reports that U.S. and Israeli strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei.
In the U.S., the Dow Jones Industrial Average is down 500 points, while the benchmark S&P 500 and Nasdaq indices are each down about 1%.
Across Asia, the main stock indices in Japan and Hong Kong are each down more than 1%, as are all the major bourses across Europe, including England, France and Germany.
The spike in oil prices comes as crude shipments through the Strait of Hormuz, a critical shipping lane in the Middle East, has come to a virtual standstill, raising supply concerns.
At the same time, the price of gold is up nearly 3% to $5,400 U.S. an ounce as investors pile into the safe-haven assets.
The CBOE Volatility Index, Wall Street’s so called “fear gauge,” has jumped to its highest level of the year.
Among stocks, the only groups rising are those related to defence and energy.
Defense stocks Northrop Grumman (NOC) and Lockheed Martin (LMT) are each up more than 5% following the attacks on Iran.
Stocks of energy majors Exxon Mobil (XOM) and Chevron (CVX) are each up about 4% in early trading on March 2.
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