Oil sinks on de-escalation hopes following Iran strike

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

World oil prices sank yesterday as traders bet on de-escalation in the Middle East despite a strike on Israel by key crude producer Iran.

Brent and WTI prices shed around one percent, while global stock markets diverged.

Haven investment gold dipped yesterday after reaching a record peak of $2,431.52 before the weekend.

The dollar touched a fresh 34-year high against the yen at over 154 yen to the greenback, and reached its highest point since November against a basket of rival currencies.

“The market sees de-escalation as the most likely path despite the Iranian strike,” noted analysts at DNB Markets.

“The attack was well announced, with Israel and its allies fully prepared, it caused minor damage and no casualties, and with Iran quickly out saying that ‘the matter can be deemed concluded’.

A clear invitation to de-escalate.”

Experts said the limited scope of the attack showed Iran was seeking to make a show of strength, but without sparking a conflict.

US President Joe Biden was reported to have cautioned Israeli Prime Minister Benjamin Netanyahu to “take the win” and forego a counterattack.

Nevertheless, Asian equities mostly fell on fears of a broader conflict in the volatile Middle East, although Shanghai stocks jumped higher on news of fresh regulatory measures that could help its long-term performance.