Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. <\/p>\n
That\u2019s in keeping with the historical tendency of investors to look past geopolitical conflict and human tragedy, but it isn\u2019t necessarily the last word. That last word will likely belong to oil traders.<\/p>\n
\n
\u201cOil rallied today yet remains below the near-term peak from last month. If oil prices rise higher for longer, the global economy could feel a resurgence of inflation during a period when investors are hoping inflation is clearly decelerating,\u201d said Jeffrey Roach, chief economist for LPL Financial, in emailed comments.<\/p>\n
Roach also noted that, in general, markets tend to have difficulty pricing the difference between a temporary shock and a permanent shock.<\/p>\n
For now, however, the jump in oil prices isn\u2019t signaling a permanent shock. Sure, Brent crude
\n BRN00,
\n -0.10%<\/bg-quote>,<\/span>
\n the global benchmark, jumped 4.2% on Monday to end at $88.15 a barrel, while West Texas Intermediate crude
\n CL.1,
\n +5.80%<\/bg-quote><\/p>\n CL00,
\n +5.80%<\/bg-quote>
\n surged $3.59, or 4.3% to $86.38 a barrel \u2014 the biggest one-day jump for both grades since April 3.<\/p>\nSee: <\/strong>Here\u2019s what Israel-Gaza war means for oil prices as fighting continues<\/p>\nThe jump was impressive, but it comes after a big pullback last week that saw both WTI and Brent retreat from 2023 highs near $100 a barrel.<\/p>\n
So if crude can manage to close above those highs \u2014 $93.68 a barrel for WTI \u2014 investors across other markets will likely take notice.<\/p>\n
Oil futures were pulling back modestly early Tuesday, with Brent and WTI each down 0.4%.<\/p>\n
What would it take to drive crude back toward the highs? The focus is on Iran.<\/p>\n
The Wall Street Journal on Sunday reported that Iranian security officials helped plan the attack by Hamas. The Israeli military has said there is no concrete evidence of Iranian involvement, according to news reports.<\/p>\n
A direct role by Iran, a longtime ally of Hamas, would raise the threat of a broader conflict. <\/p>\n
Some analysts have put Iranian crude production at more than 3 million barrels a day and exports above 2 million barrels a day \u2014 the highest levels since the Trump administration pulled the U.S. out of the Iranian nuclear accord in 2018,\u00a0according to the Wall Street Journal. Sales fell to around 400,000 barrels a day in 2020 as the U.S. reimposed sanctions.<\/p>\n
\u201cIf Israel discovers that Iran played a role in Hamas\u2019 attack, it could retaliate militarily. At the very least, any warming of relations between Iran and the West is now on hold and this will limit incremental oil supply,\u201d said Nicholas Colas, co-founder of DataTrek Research, in a Monday note.<\/p>\n
It\u2019s a reminder that \u201cwhile neither Israel nor Gaza are major oil producers, everything that happens geopolitically in the Middle East invariably ends up affecting oil prices,\u201d he said.<\/p>\n
The potential for a broader conflict could lead to a \u201csharp market correction,\u201d argued Olivier d\u2019Assier, head of applied research, APAC, at Axioma.<\/p>\n
The scale of the conflict, the largest since the Yom Kippur War 50 years ago, renders comparisons with how markets have shaken off past geopolitical incidents, but they may be irrelevant in terms of stress testing, he argued.<\/p>\n
\u201cThe closest historical scenarios we could use would be 9\/11 and the start of the Ukraine war. But because both took place on Western soil, they might not be adequate,\u201d d\u2019Assier said.<\/p>\n
On Monday, however, remarks by Federal Reserve officials ultimately trumped the rise in crude prices and jitters over the Middle East. Dallas Fed President Lorie Logan and Fed Vice Chair Philip Jefferson both noted the rise in long-term Treasury yields and their role in tightening financial conditions, which investors took as a signal the Fed may not be as likely to further raise interest rates.<\/p>\n
See: <\/strong>An Israel-Hamas war could change what the Fed does about interest rates<\/p>\nStocks turned north after a morning dip, with the Dow Jones Industrial Average
\n DJIA
\n rising nearly 200 points, or 0.6%, while the S&P 500
\n SPX
\n also advanced 0.6% and the Nasdaq Composite
\n COMP
\n gained 0.4%.<\/p>\n
For now, market participants appear set to look ahead to economic data later this week, including September consumer-price index and producer-price index readings.<\/p>\n<\/p><\/div>\n
Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency…<\/p>\n","protected":false},"author":1,"featured_media":1621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":{"0":"post-1620","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"\n
Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros<\/title>\n<meta name=\"description\" content=\"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=1620\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=1620\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-14T00:06:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-14T00:06:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697241989_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=1620#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=1620\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices.\",\"datePublished\":\"2023-10-14T00:06:29+00:00\",\"dateModified\":\"2023-10-14T00:06:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=1620\"},\"wordCount\":698,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=1620#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=1620\",\"url\":\"https:\/\/infundpros.com\/?p=1620\",\"name\":\"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-14T00:06:29+00:00\",\"dateModified\":\"2023-10-14T00:06:30+00:00\",\"description\":\"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=1620#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=1620\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=1620#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros","description":"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=1620","og_locale":"en_US","og_type":"article","og_title":"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros","og_description":"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past","og_url":"https:\/\/infundpros.com\/?p=1620","og_site_name":"inFundPros","article_published_time":"2023-10-14T00:06:29+00:00","article_modified_time":"2023-10-14T00:06:30+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697241989_social.jpeg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=1620#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=1620"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices.","datePublished":"2023-10-14T00:06:29+00:00","dateModified":"2023-10-14T00:06:30+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=1620"},"wordCount":698,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=1620#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=1620","url":"https:\/\/infundpros.com\/?p=1620","name":"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices. | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-14T00:06:29+00:00","dateModified":"2023-10-14T00:06:30+00:00","description":"Wall Street on Monday shook off a bout of selling sparked by the Israel-Gaza war. That\u2019s in keeping with the historical tendency of investors to look past","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=1620#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=1620"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=1620#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Will Israel-Gaza war sink stocks and shake the global economy? Watch oil prices."}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/1620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1620"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/1620\/revisions"}],"predecessor-version":[{"id":1622,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/1620\/revisions\/1622"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/1621"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}