WTI Crude Oil Surges above $84 Amid US Military Strikes on Iranian Targets in Syria
US Dollar Index retreats as US Treasury yields decline, while crude oil prices rise following US military strikes on Iranian targets in Syria.
During the Asian session on Friday, the price of Western Texas Intermediate (WTI) crude oil is trading higher around $84.10 per barrel. This increase in crude oil prices comes as a result of the United States (US) military strikes on Iranian targets in Syria, which has raised concerns about a potential escalation in the Israel-Hamas conflict. Market participants are worried about the impact this could have on Middle Eastern countries that produce crude oil.
In addition to the military strikes, the Israeli armed forces have launched a significant overnight attack on Gaza, the most significant since the conflict began. This move has the potential to anger Arab nations. Furthermore, Israel Prime Minister Benjamin Netanyahu's announcement of preparations for a ground assault in Gaza has contributed to a decline in market sentiment.
However, diplomatic missions to Israel are actively working to prevent a planned ground assault on Gaza and are engaged in negotiations for the release of approximately 200 hostages held by Hamas.
As for the US Dollar Index (DXY), it is pulling back from its weekly high as US Treasury yields decline. Currently, the index is trading near 106.60. The 10-year US Bond yield is at 4.85% at the time of writing, down from the 4.98% recorded in the previous session.
Furthermore, the upbeat US preliminary Gross Domestic Product (GDP) Annualized data could further strengthen the US Dollar. The latest report shows a 4.9% increase in the third quarter, surpassing the previous reading of a 2.1% expansion and the 4.2% expectations.
Additionally, market participants will be keeping an eye on the release of the US Core Personal Consumption Expenditures (PCE) data on Friday. This data will provide further insights into the overall economic landscape in the United States.
Overall, the retreat of the US Dollar Index and the increase in crude oil prices are influenced by geopolitical tensions and economic data. The situation in the Middle East and the strength of the US economy are key factors to watch in the coming days.