Oil Prices Leap as U.S. and Iran Carry Out Airstrikes

Oil prices have jumped and world shares are mixed after the U.S. carried out airstrikes and Iran retaliated. The price of Brent crude, the international standard, climbed as much as nearly 5% early on July 13 before falling back to $77.72 per barrel, a 2.3% increase, while U.S. benchmark crude added 2.1% to $72.92 per barrel. The airstrikes and retaliation have raised concerns about the global flow of crude and its impact on energy costs and overall inflation. The conflict has also affected the stock market, with U.S. stocks ticking higher on July 10 after investors showed sustained appetite for winners of the artificial intelligence boom. However, worries about the continued fighting with Iran and its effect on the global economy have clouded the outlook. The U.S. launched several waves of strikes on Iran after an Iranian attack on a containership in the Strait of Hormuz, which set it ablaze and left a crew member missing. Iran retaliated by targeting countries across the Middle East. The situation has led to a mixed reaction in the stock market, with some indices rising and others falling. The Nasdaq composite future lost 0.9%, while the S&P 500 contract was down 0.3%. In Asian share trading, Tokyo’s Nikkei 225 index lost 1.9%, while the Kospi in Seoul declined 9%. The conflict has also raised concerns about the impact on the global economy, with high bond yields weighing on financial markets worldwide. The U.S. dollar rose to 162.01 Japanese yen, while the euro rose to $1.1435. The situation is being closely watched by investors, who are waiting to see how the conflict will affect the global flow of crude and the overall economy.