MoneyWorld

Middle east crisis triggers rise in price of oil and gold

Tehran: The US-Iran stand-off has resulted in a rise in price of both oil and gold. Brent crude oil jumped 2%, today, and price of gold touched a seven year high. There is widespread fear that the conflagration between US and Iran could lead to a full blown war.

Brent crude oil crossed $ 70 a barrel today by 2%. There is widespread fear that of missile attacks near military bases and energy facilities in Saudi Arabia. Furthermore, Iran has also threatened that it no longer consider it bound by the 2015 nuclear deal pointing to a nuclear race n the region.

Spot gold rose by 1.5% to $ 1,579.55 per ounce which is the highest since April, 2013. The rise in gold prices was because investors began to flock to the bullion as a hedge against the spiraling situation.

Middle east accounts for about half of the oil production in the world. Any disruption in the region could lead to worldwide consequences. Last year a Saudi Arabian supertanker was attacked which had led to the single largest halt in industry’s history.

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