Brent Crude Nears $75

Published on: October 03, 2024 - As the conflict between Iran and Israel intensifies, there are growing concerns about a potential full-scale regional crisis. With Iran being a major oil producer, any deterioration in this situation could have major implications for global crude oil prices. Oil prices have surged for the third consecutive day, with Brent crude nearing $75 a barrel. Experts warn that a sharp increase in oil prices could disrupt central banks' plans for rate cuts, as higher inflation might complicate efforts towards economic recovery. This rising cost of crude is particularly concerning for emerging markets like India, which imports around 80% of its oil needs. With Indian stocks already trading at premium valuations, a prolonged conflict in the Middle East could lead global investors to reassess their positions in one of the world’s top-performing stock markets. Meanwhile, gold prices have reached multiple peaks this year, outperforming all other asset classes. This surge can be attributed to several factors, including central banks reducing their reliance on the dollar, institutional investors diversifying their portfolios, a strong demand for jewelry among retail investors and escalating tensions in West Asia. As a result, gold has soared to record levels.