SYDNEY – Asian share markets looked to be headed into turbulence on Monday as a flare-up of tensions in the Middle East sent gold to its highest in almost seven years while oil flirted with four-month peaks.
The United States detected a heightened state of alert by Iran’s missile forces, as President Donald Trump warned the United States (US) would strike back, “perhaps in a disproportionate manner,” if Iran attacked any American person or target.
Iraq’s parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of a top Iranian military commander and an Iraqi militia leader.
Spot gold surged 1.6 percent to $1,575.37 per ounce in jittery trade and reached its highest since April 2013.
Oil prices added to their gains on fears any conflict in the region could disrupt global supplies.
Brent crude futures rose $1.05 to $69.65 a barrel, while US crude climbed 94 cents to $63.99.
“The risk of further escalation has clearly gone up – given the direct attack on Iran, Iran’s threat of retaliation and Trump’s desire to look tough – posing the threat of higher oil prices,” said Shane Oliver, chief economist at AMP Capital. “Historically though oil prices need to double to pose a severe threat to global growth and we are long way from that.” (Reuters)
