ALBAWABA – Gold, oil, the Yen, the Swiss Franc, and US bonds experienced significant surges following the Iranian attack on Israel on Tuesday.
Iran's missile attack on Israel
Iran launched a missile attack on Israel yesterday in response to the killing of Hassan Nasrallah, the Hezbollah secretary-general, and Ismail Haniyeh, the political leader of Hamas. This marks the second such attack in six months, prompting the Israeli army to respond with missile fire.
Gold, oil, and US bonds surge
Following the attack, Brent crude futures for December delivery rose by $1.86 (2.59%), settling at $73.56 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil futures for November delivery increased by $1.66 (2.44%), reaching $69.83 a barrel.
Gold prices rose by over 1% to $2,662, while Brent crude futures for December delivery rose by $1.86 (2.59%), settling at $73.56 a barrel. (Shutterstock)
Additionally, gold prices rose by over 1% to $2,662, while US bonds surged after Iran’s attack, leading to a surge in trading volumes for 10-year Treasury note futures.
It is worth noting that the S&P 500 index experienced its largest daily decline in three weeks falling by 1.4%. The CBOE Volatility Index (VIX), which tracks volatility on Wall Street, surged to its highest level in a month.
European stocks decline
Following the ongoing escalations in the Middle East, European stocks experienced a significant decline.
The STOXX Europe 600 index dropped 0.4%, despite earlier gaining 0.5% during the day.
Shares of Rheinmetall, a German defense company, surged by 5.1%, while Sweden's Saab company saw an increase of 3.5%.
