"Nothing lasts forever, especially in the financial markets that every 24 hours present a reality opposite to the previous day. Today, the stock markets wake up with strong purchases after the official ceasefire between Israel and Iran following less than two weeks of attacks between both countries. And oil falls, as it did yesterday at the end of the American market and opens below $68 per barrel with a 5% cut."
Investors, who showed no nervousness during Monday's session, remain calm after the recent events involving Iran. Late yesterday afternoon, the Tehran regime carried out an airstrike on the US bases in Qatar and Iraq, with prior notice to the White House, suggesting more of a gesture and a staged response for its citizens to close this chapter in its confrontation with Israel. And most importantly for investors: the Strait of Hormuz remains open, through which 20% of the world's oil passes.
Analysts understand that with this move, Iran would assume that it is, in a sense, isolated, as none of its major allies, such as China and Russia, would want to escalate the conflict in the Middle East, especially with nuclear weapons involved. However, the ayatollah regime has publicly proclaimed its intention to continue with its nuclear program, which was the origin of the conflict and Israel's target in its attacks on Iranian soil.
The result of these geostrategic movements on oil prices is that this commodity has corrected by 16%, from highs (above $81) to lows, within 24 hours. Black gold plunges an additional 5% at this time, down to $67 per barrel in the Brent, the European benchmark. The American West Texas falls another 5.5% and drops below $65 at this morning's hour.
Back in the national stock market, the Ibex 35 regained the 14,000 points in early trading, with a 1.5% increase. Within the index, Repsol stands out with a 4% drop due to the collapse in oil prices after Monday's gains. Buying extends throughout Europe with a 1.7% increase for the German Dax Xetra, the EuroStoxx 50 gains another 1.8% in early trading; and these increases reach 1.3% in other markets such as Switzerland and Italy.
The European prelude was the Asian session where the main stock markets closed with significant gains, such as the Kospi index of the Seoul Stock Exchange, rising by 2.8%. The Japanese Nikkei closed with gains of 1.14%, while the Hang Seng index of the Chinese stock market recorded a 2.2% increase.
The easing of tensions (for now) in the Middle East is particularly felt in the price of gold. The ounce price drops by almost 2% and moves away from the $3,400 it aimed for 24 hours ago. Today it plummets to levels around $3,330.