Iranian President Ebrahim Raisi, who was long seen as a potential successor to Supreme Leader Ayatollah Ali Khamenei, was killed in a helicopter crash in mountainous terrain near the Azerbaijan border, on Sunday. Following the news, the gold hit an all-time high and crude oil prices extended gains amid political uncertainty in the major oil-producing Middle East region.
Impact On Gold Prices
After the report of Iran president’s demise, gold prices hit an all-time high on Monday. The gold prices typically rises amid global uncertainities as investors go for gold as a safe-haven asset.
Also Read: Who Is Mohammad Mokhber, The Man Set To Become Iran’s Interim President?
Spot gold rose 1% to $2,438.44 per ounce, as of 0811 GMT, after hitting a record high of $2,449.89 earlier in the session. U.S. gold futures rose 1.1% to $2,442.60.
Apart from Raisi’s death, the hike in gold on Monday was also supported by a slowing US inflation trend that boosted expectations the US Federal Reserve could deliver its first interest rate cut soon. Silver also scaled a more than 11-year peak.
Impact On Crude Oil Prices
As the Iran president’s helicopter crash reports were made public, international crude oil prices extended gains on Monday amid political uncertainty in major producing countries. The rise in oil prices was also supported by Saudi Arabia’s crown prince cancellation of a trip to Japan, citing issues with the king’s health.
Brent gained 41 cents, or 0.5%, to $84.39 a barrel by 0632 GMT, after rising to $84.43 earlier, its highest since May 10.
US West Texas Intermediate (WTI) crude for June edged up 23 cents to $80.29 a barrel, after hitting $80.35 earlier, the highest since May 1. The June contract expires on Tuesday and the more-active July contract was at $79.89, up 31 cents, or 0.4%.
Saudi Arabian Crown Prince Mohammed bin Salman postponed his visit to Japan, scheduled to begin on Monday, because of a health issue with his father King Salman, said Japan’s Chief Cabinet Secretary Yoshimasa Hayashi.
Saudi Arabia’s state news agency on Sunday reported that 88-year-old King Salman will undergo treatment for lung inflammation.
Impact On Stock Markets
The political uncertainty in the Middle East region might lead to volatility in the stock markets. However, the markets seem to have defied the adverse impact of Raisi’s death on share prices. On Monday, world stocks advanced Monday after US stock indexes drifted near their records, with the Dow Jones Industrial Average closing above 40,000 for the first time.
European markets started the week higher with Britain’s FTSE 100 gaining 0.3% to 8,447.28. Germany’s DAX added 0.4% to 18,770.02 and the CAC 40 in Paris climbed 0.4% to 8,197.72. The future for the S&P 500 edged 0.1% higher, and that for the Dow Jones Industrial Average was up less than 0.1%.
Iran’s supreme leader Ayatollah Ali Khamenei has appointed the country’s First Vice-President Mohammad Mokhber as the acting president.
Iranian President Ebrahim Raisi, the country’s foreign minister and others were found dead at the site of a helicopter crash after an hourslong search through a foggy, mountainous region of Iran’s northwest, according to state media. State TV gave no immediate cause for the crash in Iran’s East Azerbaijan province. With Raisi were Iran’s Foreign Minister Hossein Amirabdollahian, the governor of Iran’s East Azerbaijan province and other officials and bodyguards.
(With Agencies Inputs)
Comments
0 comment