Oil prices rose by about two dollars on Friday in global markets, and gold prices are heading for gains for the third week in a row, as the conflict in the Middle East with the continuation of the Israeli aggression on the Gaza Strip leads to increasing concerns about oil supplies and investors' appetite for safe haven.
In early trade on Friday, Brent crude futures rose above $90 a barrel, recovering a weekly loss. U.S. West Texas Intermediate crude futures for December delivery also increased beyond $84.50 a barrel.
The rise in oil prices came after the United States launched strikes on two Iran-linked facilities in Syria, reviving investor fears that Israel's current war on Gaza could spill over to other parts of the region, which supplies the world with about a third of its crude oil needs.
Commerzbank analysts, including Thu Lan Nguyen, said the tense situation in the Middle East was likely to contribute to higher oil prices next week.
Analysts from Goldman Sachs kept their forecast for the Brent price in the first quarter of 2024 at $95 a barrel, but added that the decline in Iranian exports (if it occurs) could push core prices up by about 5%.
In a note, they noted that prices could jump by up to 20% if the least likely possibility of disrupting trade through the Strait of Hormuz (overlooked by Iran), through which 17% of global oil production passes, materializes.
Global stock markets also fell this week, while the dollar gauge is nearing its highest level since last November, driving up commodity prices for most buyers.
Oil, gold and the dollar are affected by market volatility and risks that the world is going through (Shutterstock)
Gold Rise
In precious metals markets, gold prices are heading for gains for the third week in a row as conflict in the Middle East leads to a growing appetite for investors for safe haven, although US interest rates remain high for longer.
At the beginning of trading on Friday, gold rose in spot transactions 0.1% to $ 1986.76 an ounce (ounce), while US gold futures did not witness much change to settle at $ 1996.80.
Kyle Rodda, financial markets analyst at Capital-com, said: "Gold prices will be a factor affected by the conflict between Israel and Hamas as long as things risk escalation."
Gold rose about 9% as investors turned to it as a safe haven from the potential fallout from the war between Israel and the Palestinians, which escalated earlier this month.
But expectations of higher U.S. interest rates have kept gold prices below the $2000,<> ceiling that was last exceeded in May.
Among other precious metals, spot silver settled at $22.84 an ounce. Platinum rose 0.5 percent to $904.71 and palladium gained 0.2 percent to $1135,65.<>.
For the 21st day, Israel continues its aggression on the Gaza Strip, targeting civilians on a large scale, bringing the number of Palestinian martyrs to about 7500,19 and the wounded to more than <>,<>, while the resistance responded by shelling the Israeli depth, stressing its readiness to face any ground invasion.
The Palestinian resistance, led by the Qassam Brigades (the military wing of Hamas), launched Operation "Al-Aqsa Flood" on the seventh of October in response to the aggression against the Palestinians, the continued occupation and the storming of the blessed Al-Aqsa Mosque.