oil, financial market, middle east, global economy

This Friday morning, international financial markets registered a coordinated movement of risk aversion, driven by the abrupt deterioration of security conditions in the Middle East. The trigger for the widespread turbulence was the confirmation of recent military operations involving forces from the United States and Iran, which raised the alert level for commercial maritime traffic. Immediately after the facts were released, the price of a barrel of Brent crude oil broke the technical barrier of one hundred dollars, reaching the highest trading level in recent weeks. Investors’ reaction reflects the fear that restrictions on energy supply will continue for an indefinite period. Market operators began to liquidate positions in variable income assets, seeking refuge in government bonds and strong currencies. The repercussions were felt from the opening of trading sessions in Asia to the beginning of operations in European markets. Geopolitical risk analysts point out that the vulnerability of hydrocarbon flow routes adds an extra layer of complexity to the macroeconomic scenario.