Oil prices on record: Experts warn of inflation shock!

Oil prices on record: Experts warn of inflation shock!

The recent US attack on Iranian nuclear facilities has already had its first impact on the global oil and stock markets. According to a report by T-Online, investors expect an increase in oil prices and a decline in stocks. Uncertainties regarding future developments could further increase volatility in the energy sector. Potomac River Capital's Mark Spindel says markets will be alarmed and oil prices are expected to open higher.

Before the US attacks, oil prices had already risen by as much as 18%, reaching a five-month high of $79.04 a barrel. Cresset Capital's Jack Ablin warns that rising energy prices could trigger inflationary effects, while scenarios from Oxford Economics range from a possible de-escalation to a worst-case scenario with Iran's oil output being canceled and the Strait of Hormuz closed. In a worst-case scenario, oil prices could rise to around $130, pushing U.S. inflation to nearly 6% by the end of the year.

Market analysis and inflation expectations

Markets remain tense as military conflicts between Israel and Iran also lead to a rise in oil prices. Broker-Test reports that inflation in the US is currently at 2.4%, while high price increases and solid labor market data are dampening the Federal Reserve's interest rate cutting plans. Trade policy uncertainties and geopolitical tensions add to the uncertainty.

For now, companies don't appear to be dramatically factoring the additional costs resulting from Trump's tariffs into their price increases. Nevertheless, there are signs of increasing pressure on inflation caused by rising procurement prices. This situation is creeping into consumer expectations, which are currently gloomy and reminiscent of the mood during the Corona pandemic.

Impact on stock markets and monetary policy

The uncertainties in the Middle East are also weighing on the stock markets. While the DAX shows stable stock sentiment, there is an increasing number of profit hedges. The support levels for the DAX can be found at 23,343, 22,600, 22,260 and 22,225 points, while resistance levels are at 23,589, 23,614, 23,752 and 23,860 points.

The Federal Reserve reports lower demand for workers and workforce reductions. Fed Chairman Powell is expected to reject rate cuts on June 18, despite futures market expectations of 50 basis points of rate cuts this year. Pressure from the markets and the geopolitical situation is making the situation more difficult for the Fed's monetary policy makers.

In summary, developments in the Middle East and the associated uncertainties are putting both oil prices and markets worldwide in a tense situation. Analysts predict short-term price increases followed by possible calms, but volatility remains a key theme apart from political tensions.

For more information you can visit the article T Online and Broker test read.