Daily update on the Middle East conflict and its impact on oil, financial markets, and cryptocurrencies.
Points
- Oil prices remain stable despite recent gains and supply concerns.
- Financial markets show mixed reactions with significant losses on Wall Street.
- Gold prices rise amid the Middle East conflict.
- The cryptocurrency market shows cautious optimism.
The Middle East conflict continues to unfold, affecting various markets such as oil, financial markets, and cryptocurrencies. Here’s a daily update on the current situation and its market impact as of Thursday, August 8th, 2024.
Oil Market Impact
Oil prices remained relatively stable after two days of gains. By 0903 GMT, Brent crude was down 16 cents at $78.17 a barrel, and U.S. West Texas Intermediate （WTI） dropped 9 cents to $75.14. Despite recent concerns about supply risks in the Middle East and weak demand, prices had reached their lowest levels since early 2024 earlier in the week.
The oil market found support due to a surprising 3.7 million barrel drop in U.S. crude inventories, far exceeding the expected 700,000 barrel reduction. However, traders remain nervous about potential retaliatory moves from Iran against Israel, especially with ships in the Red Sea taking longer routes due to security concerns. Libya’s National Oil Corporation also declared force majeure at their Sharara oilfield due to protests, adding to supply concerns.
Financial Markets Reaction
After a strong start, the main indexes on Wall Street experienced significant losses. The USD Index dropped below 103.00 during the European session. On Wednesday, the yield on the 10-year US Treasury bond rose close to 4% but lost momentum by early Thursday, sitting around 3.9%. US stock futures were also in the red.
Gold Prices
Gold prices rose by 0.3% to $2,389.42 per ounce in the spot market, while U.S. gold futures slightly dropped by 0.2% to $2,428.40. Market analysts believe the Middle East conflict could continue to push gold prices higher in the long term.
####
Cryptocurrency Market
The cryptocurrency market shows cautious optimism. Despite the recent turmoil, investor activity suggests a return of confidence, with a significant inflow of stablecoins to exchanges. This influx indicates that traders are preparing to purchase digital assets when the opportunity arises.
解説
- Force Majeure: A clause in contracts that frees parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.
- Crude Inventories: Stocks of crude oil held by companies, reflecting supply levels.
- USD Index: A measure of the value of the US dollar relative to a basket of foreign currencies.