The New York Times reports that the United States is pushing for Israel to agree to a cease-fire in the Gaza Strip. According to the commentary, Secretary of State Blinken is expected to personally insist that the military operation targeting Hamas be stopped.
Recently, we have seen movements in the oil market and the dollar that suggested a decline in geopolitical concerns. WTI futures fell sharply after yesterday's inventory publcation, and the U.S. dollar erased much of the gains indirectly supported by the geopolitical premium priced in by investors, characteristic of 'safe haven' assets.
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Open account Try demo Download mobile app Download mobile appToday, however, oil gained more than 1.5%, while gold lost 0.17% intraday.
What if?
If Israel will not stop attacking Gaza despite US urgings, we can expect the oil prices to rise and it can be sign that Israel is determinated enugh to continue offensive with huge civilian loses and risk of spreading Middle East conflict. On the other hand stopping a war in Gaza Strip may be a positive signal for risk assets and possibly could put some pressure on oil.
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