Conflict Sparks Oil Surge: Safe Havens in Demand
Amid escalating tensions between Iran and Israel, U.S. investors are turning to safe-haven assets like gold and the dollar. The conflict has sparked concerns over oil supply disruptions, causing oil prices to spike. While markets reacted sharply, analysts suggest the long-term impact may be limited unless the situation escalates further.
U.S. investors on Friday sought refuge in safe-haven assets like the dollar and gold as oil prices surged following Iran's military retaliation against Israel's unprecedented strikes.
Explosions were heard in Jerusalem and Tel Aviv after Israel targeted Iran's Natanz nuclear site, raising fears of broader conflict. Investors worried about oil shipment disruptions saw crude prices spike by up to 14%, with futures settling 7% higher.
The conflict's economic implications remain uncertain, but experts suggest the situation may not have long-term market impacts unless oil infrastructure suffers significant damage or the conflict widens.
(With inputs from agencies.)
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