US-Iran tensions impact financial markets
President Trump's statement rejecting a deal with Iran and demanding 'unconditional surrender' led to a sharp rise in oil prices and a drop in bitcoin and stock indexes on Friday.
Traders and investors fear an escalation of the military conflict between the US and Iran, which could disrupt oil supplies to global markets. The Brent crude price surged more than 5%, to $67, and WTI to $62 per barrel.
The bitcoin price fell 3%, to $8,400, while the S&P 500 and Nasdaq Composite indexes dropped 1.9% and 2.5% respectively. Investors are fleeing to safer assets such as gold and US government bonds.
Darkening Fed outlook
This geopolitical tension is compounded by a worsening outlook for the US economy. According to recent data, the labor market is weakening, while inflation may be accelerating. This creates a complex dilemma for the Federal Reserve, which will have to decide how to respond to these divergent trends.
Conclusion for investors
In the face of high uncertainty, investors should exercise caution and diversify their portfolios. Sharp fluctuations in cryptocurrency, oil and stock markets create both risks and opportunities for active traders. It is important to closely monitor the developments around the US and Iran, as well as the actions of the Federal Reserve.