Wed Oct 02 13:20:36 UTC 2024: ## Global Tensions Push Stock Markets Down, Oil Prices Surge
**New Delhi, India:** The Indian stock market, which has been hovering near all-time highs, has witnessed a decline in the past two days amid rising global tensions between Iran and Israel. The escalating conflict has triggered concerns about global trade, particularly affecting crude oil prices.
Following reports of Iranian missile strikes on Israel Tuesday night, crude oil prices soared by 5%. West Texas Intermediate (WTI) rose above $71 per barrel, while the global benchmark Brent Crude climbed above $75. The surge is attributed to Iran being a major player in the oil sector and a member of OPEC, raising concerns about potential disruptions to crude oil supply. Iran supplies nearly a third of the world’s crude oil, and any disruption could significantly impact industries and businesses globally.
The escalating geopolitical tension has also rippled through global stock markets, leading to declines. The NASDAQ dropped by 1.53%, the Dow fell by 0.41%, and the S&P 500 recorded a 1.4% dip. Technology giants like Apple, Nvidia, and Microsoft also experienced losses. The VIX, a measure of market volatility, has reached a one-month high, indicating heightened risk aversion. Japan’s Nikkei index also plummeted by over 2%.
Experts are warning of potential ramifications for the Indian stock market. “There is clearly volatility in the market due to the tensions in the Middle East,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “Oil prices are rising, bonds are rising, gold is rising, and stocks are falling. This is a classic geopolitical response.”
Joseph Saluzzi, co-head of equity trading at Themis Trading, expressed concerns about rising inflation fueled by the oil price increase. This could put pressure on central banks to raise interest rates, potentially impacting the stock market.
Experts predict a potential decline in the Indian stock market if the Iran-Israel conflict continues to escalate. The rising global risk aversion and investors’ anxieties could trigger a downturn. Gold prices are expected to rise as a safe-haven asset.
First Piper 