Mideast Front escalation day...Will oil prices and stable assets continue to strengthen?

[Anchor]
The front line continues to expand as the situation in the Middle East continues to deteriorate as the situation in the Middle East rages into the Great River.

As a result, there are concerns that international oil prices and stable asset prices will continue to rise due to attacks on crude oil facilities or disruptions in crude oil transport.

This is reporter Lee Seung-yoon.

[Reporter]
Iran's oil refining facility in Persian Gulf,

There are tensions as concerns have been raised that Israel could strike oil infrastructure facilities in Iran, the world's ninth oil producer.

If concerns become a reality, more than 1 million barrels of crude oil per day are expected to be disrupted.

Demand for safe assets such as dollars, gold and U.S. government bonds is increasing, as it has done in the past when geopolitical tensions such as Russia's invasion of Ukraine have risen.

International gold prices are on the rise.

Shortly after Iran's attack, trading around $2,699 per 'troion' meaning price of 31.1g gold,

Goldman Sachs raises gold price forecast to $2,900 early next year from $2,700 previously, citing geopolitical crises and more.

The dollar is also strong.

The dollar index, which represents the dollar's value against six major currencies, including the euro and yen, rose to the 101 level for the first time since the 24th of last month.

The yield on the 10-year U.S. Treasury fell 0.06% as funds poured into U.S. Treasuries.

The bigger problem is that the aftermath of the Middle East conflict may not stop at Iran's oil production and exports.

[Barra Sivan / Deputy Researcher at the Royal Joint Military Research Institute] If there is a new conflict, the variables are out of control. Many countries will get caught up, and they can get caught up in conflicts for years.

The risk of supply disruptions has increased in the Middle East, which produces one-third of the world's crude oil.

If the conflict expands and logistics through the Strait of Hormuz are blocked, crude oil exports from Saudi Arabia and the United Arab Emirates will also be adversely affected.

Global investors are grappling as geopolitical risks in the Middle East have risen to their highest levels since the Gulf War.

I'm YTN's Lee Seungyoon.



Video editing: Han Kyung-hee

Design: Lee Wonhee