Many stock markets are closed Monday, but U.S. exchanges see declines
Oil prices jumped and stock markets around the world mostly slumped after deadly attacks by Hamas from the Gaza Strip prompted Israel to declare war.
The price of a barrel of West Texas Intermediate oil jumped by almost $5 to more than $86 US a barrel on Monday, mostly on concerns that the volatile situation could ensnare more countries in the region.
Israel is a marginal oil producer, but nearby nations in the Middle East are major suppliers, and if they get involved in the fighting, global supplies will be significantly impacted.
“While oil fundamentals have not changed since these attacks, it does not mean they won’t,” said Warren Patterson, head of commodities strategy at Dutch bank ING. “There are reports that Iran helped Hamas plan the attacks and gave them the green light.
If this is proven to be true, we could see the U.S., an ally of Israel, taking a tougher stance against Iran, which could ultimately lead to a reduction in oil supply.”
The Toronto Stock Exchange was closed for the Thanksgiving holiday on Monday, and most major Asian markets are also closed. But the New York Stock Exchange was open and stocks mostly slumped to start with and rebounding somewhat later in the day.
The S&P 500 was 0.6 per cent higher in its first trading since the attack. Trading has been unsteady, with the benchmark index falling as much as 0.6 per cent earlier. Ref.
