anxiety is growing among investorsOil prices have again crossed 103 dollars

Amidst rising tensions in the Middle East and fears of a potential conflict surrounding Iran, oil prices in the international market have once again surged above $100.

At the close of trading on Friday (March 13), the price of Brent crude stood at $103.14 per barrel, crossing the $100 mark for the first time since August 2022. According to analysts, anxiety is growing among investors due to the escalating conflict involving Iran and the potential disruption of fuel supplies through the Strait of Hormuz. This has also impacted global stock and currency markets.

Data shows that the price of Brent crude rose by 2.67% in a single day. At the same time, U.S. West Texas Intermediate (WTI) oil futures increased by 3.11%, closing at $98.71 per barrel. A major driver behind this price hike is recent commentary from U.S. President Donald Trump, who stated that the United States might take "very tough" measures against Iran next week. Simultaneously, there has been talk of partially easing some sanctions on Russian oil to maintain global supply stability.

Concerns Over the Strait of Hormuz

Tensions intensified when Iran’s new Supreme Leader, Mojtaba Khamenei, announced a declaration to keep the strategically vital Strait of Hormuz closed. Approximately 20% of the world’s total crude oil production is transported through this maritime route. Consequently, a closure of this path could have a massive impact on the global energy market. Mitch Reznick, Head of Fixed Income at Federated Hermes, noted that news is hitting the market rapidly, significantly affecting oil prices and financial markets.

Reaction in Stock Markets and the Dollar

Due to the uncertainty, all three major U.S. stock indices ended the day lower. The Dow Jones fell by 0.25%, the S&P 500 decreased by 0.6%, and the Nasdaq Composite dropped by 0.9%. European stock markets followed the same trend, with the STOXX 600 falling by 0.5% and the MSCI All-Country World Index declining by 0.9%. Meanwhile, the demand for the U.S. Dollar as a "safe-haven" investment has increased, strengthening its value by approximately 0.8% against other currencies.

Rising Inflation Fears

The surge in oil prices has sparked new concerns regarding inflation. As a result, investors believe the likelihood of the U.S. Federal Reserve cutting interest rates has diminished. While there were previous hopes for a 50-basis-point cut, expectations have now dropped to about 20 basis points.

Furthermore, the yield on U.S. two-year Treasury bonds has reached a six-month high. Economic growth forecasts for the fourth quarter of 2025 have also been lowered, as consumer spending and business investment remain weaker than expected. In the currency market, the Euro fell by 0.8% to $1.1417, while the Japanese Yen weakened to 159.66 per dollar, its lowest since July 2024. Analysts suggest that the strong position of the dollar is making it increasingly difficult for central banks in various countries to intervene in the market. Meanwhile, gold prices also dropped by 1.27% to $5,014 per ounce, as many investors are now shifting toward oil and the dollar.

Source: Samaa TV