The cryptocurrency market crashed shortly after Israel launched a major military attack on Iran.
The liquidation soared to $1.1 billion. Global markets quickly shifted to a risk-off sentiment, with prices for gold and oil rising sharply.
A major geopolitical conflict has occurred, and markets are likely to see significant volatility in the near term.
Given the ongoing escalation of the conflict between Israel and Iran, the European energy market is facing serious challenges. Analysis shows that European refining capacities may face a raw material shortage of up to 30%, and this supply disruption could lead to a rapid increase in diesel prices by an astonishing 50%.
In response to this crisis situation, market experts have begun to evaluate possible alternative transportation routes. The East-West pipeline of Saudi Arabia, while it can be considered as an alternative, has a maximum capacity of only 6.5 million barrels per day, which clearly cannot fully compensate for the current supply deficit.
Another potential solution is to increase capacity via Russia's Northern Sea Route. The capacity of this route has been increased to 2 million barrels per day, but this option also faces challenges as it will extend transportation time by about 15 days, further exacerbating pressure on the supply chain and transportation costs.
This energy crisis situation threatens not only industrial production in Europe but could also significantly impact ordinary consumers, especially during peak heating demand in winter. The ongoing geopolitical tensions will further exacerbate uncertainty in energy markets.
What will happen to the market?
Share👇🤝