(Reuters) -s President Donald Trump on Saturday said that a “very successful attack” had been performed at three nuclear locations in Iran.
“Iran's most important nuclear enrichment facilities have been completely and completely erased,” Trump said in a television on television Oval Office.
After days of deliberation and long before his self -imposed deadline of two weeks, Trump's decision to participate in the military campaign of Israel represents an important escalation of the conflict against his most important rival Iran.
Market reaction: Closed with most markets, was the only reaction in cryptocurrencies. Ether fell by more than 5%, Bitcoin fell by 1%.
This is followed by comments from some financial analysts:
Mark Spindel, CIO, Potomac River Capital, Washington DC:
“I think the markets will initially be alerted and I think oil will open higher. We have no damage -assessment and that will take some time. Although he has described this as 'done', we are engaged. What will come afterwards? I think the uncertainty will blanket, because now Americans are exposed everywhere.
“There is enough time to deliberate before the markets open on Sunday. I make agreements to talk to a few people tomorrow. We will get an early indication when the dollar opens for the trade in new Zeeland. This was such a daring action, and it is such a big contrast with the comments about negotiating for the next two weeks.”
Jamie Cox, Managing Partner, Harris Financial Group, Richmond, Virginia:
“Oil will certainly go on this first news, but will probably be the same in a few days. With this demonstration of violence and total destruction of his nuclear possibilities, they have lost all their leverage and will probably hit the escape button for a peace agreement.”
Mark Malek, Chief Investment Officer, Siebert Financial, NYC:
“I think it will be very positive for the stock market. I believe that if you had asked me, I would have expected two weeks of volatility with markets that try to analyze every drib and boring information from the White House and I would have said that it would have been better to make a decision last week.
“So this will be reassuring, especially since it seems one and one done situation and not as if (the US) is looking for a long, drawn conflict. The greatest risk that there is still there is the street of Hormuz. It can certainly change if Iran has the opportunity to close it.”
Jack Ablin, Chief Investment Officer of Cresset Capital, Chicago:
“This adds a complicated new risk pool that we have to consider and pay attention … This will definitely have an impact on energy prices and possibly also on inflation.”
Saul Kavonic, senior energy analyst, MST Marquee, Sydney:
“This escalation can add sufficient pressure on Iran to see Iran down again and to accept a deal that de-escalates the conflict and lower oil prices with it.
“The most likely scenario: this American attack could see a sea of fire of the conflict to respond Iran by focusing on regional American interests that can be regulated through the Strait of Hormuz in places such as Iraq or Hormuz.
“A lot depends on how Iran reacts in the coming hours and days, but this could put us on a path to $ 100 oil if Iran reacts as they have threatened before. The information warfare that seems to have been designed to have overwhelmed Iran has also caught the oil markets to a certain extent.”
Rong Ren Goh, Portfolio Manager, Eastspring Investments, Singapore:
“The American bombing at Iranian nuclear facilities marks an important escalation in the Israel-Iran conflict and introduces a new phase of geopolitics risk, with direct involvement of the US that will probably extend the tensions in the region.
“For Asian markets, the most important vulnerability lies in their sensitivity to higher energy prices. A long -term conflict increases the risk of disruptions of delivery, which can feed on inflato pressure and weighing the growth meter in the region.
“With the prospects of a rapid resolution that is now purchasing, investors are likely to conquer the risk in different markets. I expect to see a flight to safety, with the USD-bid and broad weakness in Asian risk provisions while markets assess the potential failure of persistent geopolitical instability and raised oil prices.”
Alex Morris, Chief Investment Officer, F/M Investments, Washington DC:
Morris expects crude oil to spin up to $ 80 or more when it resumes trade.
“That is the next stop as a knee shock reaction. I think that is the reason that this happened on a Saturday and not Sunday. There is much more that will happen the next 24 hours”
Eric Beyrich, Portfolio Manager, Sound Income Strategies, Larchmont, New York:
“If there is nuclear fallout – all bets are eliminated. The regime will conclude that it has lost everything and will do all kinds of crazy things, such as commissioning terrorist attacks on embassies.”
Christopher Hodge, Chief US Economist, Natixis, New York:
“There is an abundance of potential consequences, but it seems as if the strikes were the target, discreet and discriminatory. If so, and if Iran's oil export capacity is not affected, the economic fall -out must be included.
“A short -term doll in the oil prices will be seen less by the FED as a factor that increases input costs and nourishes with inflation than if a tax on consumers suppressed the demand. I would not expect this to take into account the FED decision calculus unless the peak in oil prices is retained.”
(Reporting by Saeed Azhar, Suzanne McGee, Scott Murdoch, Vidya RanganathanPmiled by Peter Henderson and Vidya Ranganathan)
