The consequences of unfolding quagmire of the US-Iran conflict are not restricted to the political arena. The world economy has also felt shock waves of the rising tensions and stocks have been plunging all over the world as analysts are comparing the conflict to a World War in the making with slain General Soleimani as a parallel to Archduke Franz Ferdinand, whose assassination ‘lit the gunpowder barrel’ and started the first World War.
Here are three examples of the World economy feeling the effects of the US-Iran Conflict:-
1. Asia stocks tumble, Dow futures plunge 350 points
Asian markets tumbled and U.S. stock futures were sharply lower Tuesday evening after Iran fired a series of missiles at bases housing U.S. troops in Iraq. The attack was an apparent retaliation after the U.S. killed top Iranian General, Qassem Soleimani, in Iraq last week.
Dow futures dropped 350 points while Standard & Poor’s 500 futures slid 1.3%.
Oil prices jumped as tensions in the oil-rich Middle East could disrupt crude supplies in the region. U.S. crude jumped 3.4% to $64.80 per barrel. Brent crude, the international benchmark, climbed 3.5% to $70.72 a barrel.
Global stocks have come under pressure in recent days as tensions have escalated between Iran and the U.S., threatening conflict in the oil-rich Middle East. Investors have dumped stocks in favor of safe-haven assets like gold and government bonds.
2. Stocks plunge in Japan
Tokyo stocks dropped Wednesday as mounting tension between the United States and Iran spooked investors, but the market avoided free-fall after Tehran said it had “concluded” for now its missile attacks on US forces in Iraq.
The benchmark Nikkei 225 index fell 1.57 percent or 370.96 points to 23,204.76, while the broader Topix index fell 1.37 percent or 23.65 points to 1,701.40. Shortly before the opening bell, investors heard the news that Iran fired missiles against military bases in Iraq that house US troops.
It came with the global market already holding its breath after US President Donald Trump announced that he had ordered the killing of top Iranian general Qasem Soleimani. The Iranian attack spiked oil prices and drove down the dollar as well as Asian shares.
In initial trade, London’s benchmark FTSE 100 index of major blue-chip companies lost 0.4 percent to 7,542.24 points compared with Tuesday’s close
Investors fled “in reaction to the news Iran launched missiles at Iraqi bases that house US troops,” Kyoko Amemiya, senior market advisor at SBI Securities, told AFP.
However, shortly before noon in Japan time, Iranian Foreign Minister Mohammad Javad Zarif tweeted his nation had “concluded” its reprisal. The market then trimmed its earlier losses while the forex market gained relative stability.
“Once the round of selling subsided, dip buying began,” allowing the Nikkei index to trim earlier losses, Okasan Online Securities said in a note to clients.
Read more: Oil prices surge in fear of Middle East conflict following Soleimani’s death
The dollar stood at 108.43 yen in Tokyo in the afternoon, rebounding from 107.65 yen seen in earlier, and surpassing the 108.42 yen in New York on Tuesday.
Among major shares, Toyota fell 1.27 percent to 7,617 yen, while Uniqlo-operator Fast Retailing dropped 1.85 percent to 62,080 yen. SoftBank Group lost 1.36 percent to 4,583 yen. Energy developer Inpex Corp added 0.34 percent to 1,187 yen. Sony shed earlier losses and ended up 0.07 percent to 7,660 yen.
3. European Stocks take a Dip
Europe’s main stock markets slid at the open on Wednesday after Iran launched missile attacks on US targets in Iraq following the killing of its top general.
In initial trade, London’s benchmark FTSE 100 index of major blue-chip companies lost 0.4 percent to 7,542.24 points compared with Tuesday’s close.
In the eurozone, Frankfurt’s DAX 30 index shed 0.8 percent 13,124.76 points and the Paris CAC 40 reversed 0.5 percent to 5,981.99.
“Global markets have been shaken … after Iran launched an unexpected missile attack against multiple US military bases in Iraq,” said analyst Bethel Loh at trading firm ThinkMarkets.
AFP with additional input by GVS News Desk.