Oil Prices Volatile After ‘Heavy Wave’ of U.S. Strikes

Oil prices have been volatile after the U.S. conducted a ‘heavy wave’ of strikes against Iran, responding to an attack on a U.S. base. Brent crude fell 0.2% to $87.92 per barrel, while benchmark U.S. crude lost 0.3% to $84.25 per barrel. The strikes have added to the uncertainty in the market, with the price of Brent crude having risen from around $72 a barrel in late February, before the Iran war began. The volatility in oil prices has been reflected in the stock market, with the S&P 500 and Dow Jones Industrial Average trading lower after the Federal Reserve decided to hold interest rates steady. The decision by the Fed has added to the uncertainty in the market, with the yield of the U.S. 10-year Treasury rising to 4.68%. The U.S. dollar has also risen, reaching 163.83 Japanese yen from 163.41 yen, while the euro has risen to $1.1475 from $1.1467. The situation in the Middle East has also affected the stock market in South Korea, with the Kospi falling 1.2% to 5,593.56, after falling 10.8% on July 28 and nearly 6% on July 29. The benchmark has fallen more than 38% from its all-time closing high of more than 9,100 in June, though it’s still up nearly 30% so far this year.