The oil is now up with the stocks being down. This is a response which was predictable in the response to the dramatic attacks of United States on the powerful commander of Iran with the tensions mounting in the Middle East that is the home of most of the oil in the world.
However, in comparison to the historical standards, the reaction has fairly been muted up until now.
On Friday, the military of United States had killed Qassem Soleimani who was the leader of Quds Force of Iran in an airstrike which took place in Baghdad. The attack has not affected the production of oil and Iran already is under the sanctions which are keeping a lot of their oil off the market globally. However, it was actually indeed a sign of the conflict which was growing. As a response the oil prices of the globe had risen by close to 4% initially before they settled down at gaining of lesser than 3%
That has been pale when compared to the spike of 14% in the crude prices post the attack in September on the production facilities in Saudi which the United States and their allies had attributed to the Iranians. Even that price jump had been triggered by a major reduction in the availability of the oil supplies had been temporary as the market had regained itself soon after.
Stocks had also been faltering a bit on this Friday. After they began 2020 with a rally, the indexes saw a fall of lesser than 1% with the exception of the rise of oil stocks which rose with the oil prices due to the attacks.