Oil prices jump and stocks fall on Friday due to fears that Israel’s attack on Iranian nuclear and military targets can escalate more and damage crude flow all over the world, along with the global economy.
The price of a barrel of West Texas Intermediate jumped – American raw standard – approximately seven percent on Friday morning to about 72.65 USD.
Brent crude, the international standard, rose about seven percent to $ 74.30 a barrel.
Western Canada Select was selling about $ 57.34 a barrel on Friday morning.
Iran is one of the world’s leading oil producers, although the sanctions made by Western countries have limited their sales. If a wider war broke out, Iran’s oil flow may slow down and maintain the price of crude and gasoline is higher for all around the world.
Outside the oil coming from Iran, analysts also indicated that disturbances may occur in the Strait of Hormuz, a relatively narrow waterway off the coast of Iran, where a lot of oil in the world moves on ships.
On Friday, oil prices jumped on fears that the wider Middle East conflict can disrupt traffic in the Strait of Hormuz, through which a large part of the world’s oil supplies is shipped.
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But the previous attacks that participated in Iran and Israel witnessed prices for the rise in oil at the beginning, just to fall later, “as soon as it became clear that the situation was not escalating and there was no effect on oil supplies,” according to Richard Joseweek, the head of oil close to the range in S and Plobal Commodity.
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As for the news that affects Canada and around the world, he participated in the urgent news alerts that were delivered directly when it occurs.
This has Wall Street waiting to see what will come after that.
Currently, the oil price jumped, but it is still less than it was earlier this year.
“This is an economic shock that no one really needs, but it is a shock that appears to be a shock to feelings more than the basics of the economy,” said Brian Jacobsen, the chief economist at Annex Wealth Management.
Global stock markets also fell on news outside the Middle East, with TSX, the main stock index in CanadaFrom about 25 points to 26,590 at the back of the back at east.
the Dow Jon’s industrial average About 400 points decreased to 42,572.79 and the Nasdak compound was from 100 points to 19561.
The stocks in Exxon Mobil increased by 1.5 percent, and Konokovilps has gained 1.9 percent because the price of jumping from raw columns achieves greater profits for them.
The Canadian dollar rose slightly to about 73.63 cents.
The price of gold has also increased by about 1.5 percent, to more than 3400 USD and near the record, as investors searched for safer places to stop their money.
While high oil prices are likely to lead to an increase in gasoline prices, They can be a blessing for Alberta’s regional budgetWho expected a deficit of $ 5.2 billion, expecting that oil prices would be about $ 68 a barrel.
all It is expected that a dollar increase in the price of oil is expected to increase the regional government revenues About $ 750 million.
– With files from Reuters and international news.
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