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Oil prices rose on Monday after US and Israeli attacks on Iran sparked conflict in the Middle East, disrupting crude supplies from the region.
In the first trading session since the attacks on Iran began, international benchmark Brent crude rose as much as 13 percent to $82.37 a barrel, but gave up some of that gain to trade up 7 percent in London.
Activity in the Strait of Hormuz, the narrow waterway at the mouth of the Gulf, through which a fifth of the world’s oil and gas flows, has slowed to a near halt after the attacks.
Tehran’s retaliatory attacks on its Gulf neighbors also threaten regional infrastructure that is vital to global energy markets.
“The impact of this conflict for the world economy depends on the flow of oil and gas through the Strait of Hormuz,” said Norbert Rucker, head of economics at Julius Baer.
“The most frightening scenario is not its closure, but serious damage to the region’s key oil and gas infrastructure.”
Gold prices rose 1.6 percent to $5,362 a troy ounce as investors sought safe-haven assets. The dollar rose 0.4 against a basket of its major trading partners.
Futures tracking the S&P 500 indicated the index would fall 0.8 percent when Wall Street reopened on Monday. Futures for the Nasdaq 100 were flat.
Stock markets across Asia fell on Monday, with Japan’s Topix and Hong Kong’s Hang Seng indexes falling 1.5 percent and 1.4 percent respectively.
