A serious escalation in the Middle East: Israel bombs Iran and the global economy shakes
A bloody night was witnessed by the world with Israel's announcement of strikes on targets in Iran, and Netanyahu's most dangerous statement:
"The operation will last for days."
The markets did not wait long to reflect the magnitude of the shock:
•📈 Oil jumps 9% to reach $75 per barrel.
(While it exceeded $100 during the peak of the Russia-Ukraine war)
•📈 Gold continues to rise to a historic level of $3,427 per ounce.
(Increasing demand for safe havens as risks widen)
•📉 Global stock markets fall in futures.
•📉 Cryptocurrencies collapse sharply.
⚠ Economically, we in Turkey are among the most vulnerable countries to these developments for several reasons:
•We heavily depend on energy imports, and any increase in oil prices will immediately reflect on the balance of payments and inflation.
•The rise in gold prices puts pressure on domestic demand and increases the difficulty of managing liquidity.
•Increased geopolitical risks mean higher financing costs and rising sovereign credit risk (CDS).
•The decline of emerging markets usually quickly reflects on weak currencies.