Oil and gold on a strong rise – “I would trust oil in geopolitical matters”

Despite the uncertainty, the main stock indices made an effort to rise on the New York stock exchanges on Monday. The markets are considering the consequences of the Iran war.

Iran’s Islamic Revolutionary Guard Corps said on state television on Monday that Iran would set fire to “any ship that tries to pass through the Strait of Hormuz.” More than a fifth of the world’s oil and a significant part of liquefied natural gas pass through the strait.

Oil prices rose sharply as a result of the US bombing campaign that began over the weekend. WTI crude oil was above $71 per barrel. The price of Brent crude oil rose to $78.38 per barrel. The price of gold rose to over $5,300.

“Oil and US stocks tell a very different story about geopolitical risk today. I’d rather trust oil on geopolitical issues,” writes the former JPMorgan’s chief market strategist Marko Kolanovic In the X message service, according to Barrons investment media.

The Iran war has fueled inflation fears and hit the bond market. The interest rate on the US 10-year government bond rose to 4.038 percent.

As a result of the conflict, investors’ hopes for quick interest rate cuts have started to fade. The US central bank Fed’s next interest rate meeting is on the 17th and 18th. March.

The broad S&P 500 stock index, which tracks large companies, managed a narrow rise. The technology-focused Nasdaq advanced 0.4 percent. The industrial company index Dow Jones fell 0.2 percent. The Russell 2000 stock index, which tracks small companies, gained 0.9 percent.

Among the sectors, the energy and defense industries did the best. Many technology companies also strengthened.

From large technology companies Nvidia progressed three percent. Microsoft rose 1.5 percent, Meta 0.8 percent and Apple 0.2 percent. Amazon left 0.8 percent and Google’s parent company Alphabet to a decrease of 1.7 percent.