Attacks on gas field tip equities into the red
|Attacks on Iran's gas fields have kicked off a fresh bout of losses for equities and a move back above $100 for Brent, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Energy strikes cause fresh market rout
The tentative recovery in equities so far this week has been dealt a major blow as news of attacks on Iran’s gas infrastructure comes through. The rally had always been precarious given tonight’s Fed decision, but the market really doesn’t like seeing energy infrastructure directly targeted. Anxious traders now wait to see how Iran will respond to this fresh escalation, but with oil prices heading higher again a retest of the recent lows seems to be on the cards.
Dollar boosted in risk off mood
Oil prices are surging again and this afternoon’s developments have pushed investors to the dollar. The US currency remains the only real safe haven, with the yen out of favour thanks to the policy outlook and Japan’s dependence on imported oil. As the conflict grinds on and continues to intensify, the dollar’s strength is here to stay.
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