Donald Trump wrote that after the surrender and “the election of a great and acceptable Leader(s), we and our many great and very brave allies and partners will work tirelessly to ensure Iran avoids destruction by making it economically bigger, better and stronger than ever before.”
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These are tough conditions and may be difficult for Iran to accept, even though it is in a very difficult position against the world's most modern army. The market recognized that this was a risk of prolonging the conflict for a longer period of time, and thus prolonging problems with oil and gas supplies from the Middle East. It is true that it is mainly Europeans and Asians who suffer from this, but the USA is also a net importer of oil, although it extracts a lot of it at home. They have their own gas.
As a result, Wall Street reacted nervously. The S&P 500 index loses 0.9 percent, which deepens its decline this year (-1.2%). The Nasdaq index, where technology companies dominate, is decreasing by 0.8%, which means a decline of 2.9% since the beginning of the year.
Among the top 100 Wall Street companies, the shares that fall the most are BlackRock (-5.7%), Bank of America (-3.2%) and Citigroup (-2.9%). Oracle shares are rising (+2.5%).
Bad and good news for the US
For the American economy, words about “unconditional surrender” are both bad and good news. It is a net importer of oil, but also an exporter of gas. However, the increase in oil prices may result in a recession of the global economy, already battered by Trump's tariff policy, and specifically limit the purchasing opportunities of residents, who will spend more on fuel, electricity and heating. And the global recession will also affect the USA.
Brent crude oil prices rise by as much as 7 percent on Friday. to $91.40 per barrel. And since the reason for the growth is not the expected economic recovery, it means a burden on the global economy. Especially for European and Asian.
Gas prices in Europe increase by 4% on Friday. up to EUR 52.7 per MWh. This is a blow to energy prices in European countries where the price is practically set by gas power plants.
European gas quotations
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