Iran launches missiles against US bases in Iraq

Daily Analysis - 08/01/2020

US stock futures fell yesterday after the missiles hit US bases in Iraq

Yesterday Pentagon officials stated that Iran launched around 30 ballistic missiles upon various bases that house US troops in Iraq. It was not instantly visible if any US military divisions were injured in the hits. The US president will formally address the nation today regarding the matter. US stock futures fell on yesterday night after the news. Dow Jones Industrial Average futures lost more than 340 points and registered a decline of an additional 360 points at today's open. The Nasdaq and the S&P 500 pointed to damages of at least 1.3%. Dow futures temporarily dropped more than 400 points earlier. Oil prices rose more than 4% at their tops in early exchanging on Tuesday night.

Gold supported by Iran attack

On Wednesday the classic safe haven metal Gold climbed more than 2% passing the key level $1,600, while investors attempted to find refuge in the safe-haven metal following the firing of Iranian missiles at Iraqi airbase which house some US forces. Spot gold rose almost 2% to $1,603.20 per ounce. Gold hit its highest level since March 2013 at $1,610.89 earlier in the trading session. US gold futures surged 2% to $1,605.79.

Oil prices rose more than 4%

On Tuesday night Oil climbed more than 4% at its top in early exchanging following a Pentagon official statement that Iran launched more than 30 ballistic rockets upon various bases in Iraq that house some US troops.

US West Texas Intermediate crude futures got more than 4% and reached the $65.65, its highest level since April. After the surge fell back to $64.10. International benchmark Brent crude surged more than 4% to a session top of $71.74 per barrel, before rolling back to $69.85.

Good old safe haven yen gains respect once again

On Wednesday the safe-haven Japanese yen surged and gold exploded higher following a missile strike on a base hosting U.S. troops in Iraq. That event reawakened concerns of a wider conflict breaking out in the Middle East and sent investors racing for safety.

Rockets were shot at various points including Iraq’s al Asad airbase, which hosts US forces, US officials told Reuters, speaking on condition of anonymity. The yen is considered a safe haven in times of confusion.

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