Oil prices rose, on Wednesday, after a media report that US intelligence received information that Israel was planning to strike Iranian nuclear facilities, in a move that might lead to an escalation of geopolitical tension and feed fears of a regional conflict.
While the price of gold increased by 2%, it seemed that the reports published by the CNN did not significantly affect the Asian markets, most of which were recorded similar to that registered in the previous day.
However, investors are still following the China -American relations after Beijing condemned Washington’s “bullying” against the background of controls to export electronic slides, just more than a week after the two parties reduce the level of commercial tensions by a temporary reduction in highly mutual customs duties.
The price of a Brent crude barrel of North Sea increased by 1.8 percent to reach 66.56 dollars, while the price of West Texas Intermediate crude increased by 1.9 percent, to record $ 63.22 after CNN quoted a number of American officials as saying that the government had received intelligence indicating that Israel is preparing to target Iranian offspring facilities.
Fears of the possibility of a severe escalation of such an outbreak of war in the Middle East, where the level of tension is still high against the backdrop of Israeli strikes on Gaza.
“This clear indicator until the moment is the size of the risks associated with talks between the United States and Iran, and to what extent, Israel could move if Iran insists on maintaining its commercial nuclear capabilities,” said Robert Rene of the “WestPac Banking Corp”.
The prices of crude increased by about 15 percent since the beginning of the month, due to the decline in concerns about economic expectations, after a relative calm in the tensions associated with customs duties.
The markets continued to rise after the gains they achieved on Monday, against the backdrop of hopes related to commercial conversations.
Hong Kong markets (0.5% at 23806.59 points), Shanghai (0.2% at 3386.46 points), Sidney, Souyn, Wellington, Pipe and Manila are recorded in Tokyo (fell 0.1% at 37491.80 points) and Singapore.
“Summary of economic activity”
But the recent relief in the relationship between China and the United States was shaken on Wednesday when Beijing condemned the American “intimidation” in relation to the regulations for exporting electronic slides, and warned of the possibility of steps against the measures aimed at imposing restrictions on China’s arrival to semiconductors.
The statements came after US officials revealed last week as guidelines that warn companies against using semiconductor -made semiconductors linked to artificial intelligence, the most prominent of which is the “Asind” slices produced by the “Huawei” technology giant, which makes it facing the risk of violating American export controls.
A number of federal reserves indicated that reducing interest rates in the United States soon may be excluded, while warning of the repercussions of US President Donald Trump’s customs on the economy and inflation.
The head of the Federal Reserve at St. Louis Alberto, peaceful, warned that the procedures may harm growth and jobs, although several countries are working hard to mitigate the fees suggested by Trump.
“Even after the escalation was reduced on May 12 (with China), it seems that it will have a significant impact on economic expectations,” said Masim, adding that “customs duties will likely lead to slowing economic activity and lead to further decline in the labor market.”
The spokesman added that “the commitment now to ignore the high inflation due to customs duties or the reduction of policy (monetary) bears the risk of reducing the level of inflation and its continuity.”
For his part, the Federal Reserve Chairman at Atlanta Rafael Bustic pointed out that reducing the credit rating issued by Moody’s and Trump’s proposal to reduce taxes may wake up blurry, which will force officials to keep interest rates high.
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