Prices for oil, gas and precious metals have jumped due to the conflict between Iran, Israel and the US.
According to Bloomberg, the price of Brent crude has jumped 13% to over $82 per barrel, and oil markets are now bracing for disruptions to shipping through the Strait of Hormuz. This is because tanker traffic through the strait effectively stopped last weekend amid mutual attacks by Iran, Israel, and the United States.
About a fifth of the worldʼs oil and liquefied natural gas pass through the strait every day. Although it has not been officially closed, shipowners have largely stopped sailing there.
For the same reason, gas futures in Europe have risen by 25% — the largest increase since August 2023. Analysts predict that if gas transportation through the Strait of Hormuz is suspended for the entire month, gas prices will more than double.
Gold and silver prices also jumped. Spot gold rose 2.7% to $5,400 per ounce, silver rose 2.4% to $96 per ounce, platinum added 1.7%, and palladium gained more than 3.1%.
War in the Middle East
On the morning of Saturday, February 28, the US and Israel began attacking Iran. The Israelis called the operation “Lion’s Roar”, the US called it “Epic Fury”. In the evening, it became known about the death of Iran’s supreme leader Ayatollah Ali Khamenei. He died in his residence during US and Israeli strikes on the morning of February 28.
Iran responded by attacking American bases in the Persian Gulf countries of Bahrain, Kuwait, Qatar, and the UAE. Iran also attacked Israel with ballistic missiles. Some Iranian drones and missiles targeted infrastructure and residential areas in Arab countries. For example, at the airports of Dubai and Abu Dhabi (UAE), one person was killed and 11 were injured due to Iranian attacks.
Israel also attacked the Lebanese pro-Iranian Hezbollah, which struck back.
An Iranian drone attacked the British air base in Akrotiri in Cyprus. The BBC writes that no one was injured, there is only minor damage. The day before, the British Defense Minister John Healy said that Iran had fired two missiles in the direction of Cyprus. Healy said that they were not aimed directly at British bases, but this shows how "indiscriminate" the Iranian response is.
British Prime Minister Keir Starmer said in a statement that the United States could use British bases in the region to strike Iranian missile depots and launchers. Britain will not attack Iran, but will intercept its air targets and will bring in experts from Ukraine and its own to help Gulf states shoot down Iranian drones.
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