Decisive hours.. What are the oil and stock markets waiting for after the failure of the Iran talks?
Oil markets and global stocks are preparing in the coming hours to deal with the effects of the failure of Talks between the United States and Iran, as oil prices are likely to be the first to react to the resumption of trading, while stocks may face periods of volatility as uncertainty around The Strait of Hormuz.
Negotiations in Islamabad ended without reaching an agreement after nearly 21 hours, with US Vice President J.D. Vance telling reporters that Washington had offered "Her best final show"while Iran indicated that further discussions may be needed.
These statements raised further doubts about the sustainability of the two-week ceasefire agreement, and added new concerns about the course of the conflict.
Oil markets are preparing for sharp fluctuations
With the date of reopening oil markets approaching, the absence of any breakthrough in the negotiations has led to a noticeable change in market trends.
Peter Maguire, CEO of the company, expected "XM Australia"an immediate rise in crude prices when the markets reopen, saying: "We expect a slight increase in oil prices by a few dollars. Prices will witness fluctuations on the first day of trading".
He added that "Oil prices may trade in the $100 range in the next 24 to 48 hours"indicating the possibility of a sharp rise if geopolitical tensions escalate or supply disruptions worsen.
The agency reported "Bloomberg" That the negotiations are likely to collapse "Shaking up the oil and gas markets"Stocksare more complex. Market traders point out that although volatility is inevitable, massive or widespread selling is unlikely at this stage.
Saanjay Parikh, Founder and Chief Investment Officer at "Sohum Asset Management" for network "CNBC": "The situation is volatile, but markets believe that the pressure on the United States to resolve the crisis is too great. He added: "Looking at this situation as an ongoing process, I expect the market to be neutral, not too pessimistic"
Barrick explained that any correction can be contained and may provide investment opportunities.
He said: "We must realize that there may be a 3-5% decline, this should be exploited to increase the equity allocation"At the same time, he warned against "Potential for sharp declines"Therefore, investors should act gradually and cautiously."
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