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brokerhive-Tensions in the Middle East push up oil prices, global risk aversion heats up
forex8 months before
Summary：This week, due to the deterioration of the geopolitical situation in the Middle East, international oil prices rose sharply, and safe-haven assets such as gold and the US dollar strengthened. The market is worried that the expansion of the situation will affect the supply of crude oil, and the risk appetite of global investors has cooled rapidly.
June 18, 2025 — Dubai/London joint report
Earlier this week, military frictions broke out again in the Red Sea and the Persian Gulf, causing market concerns about the Middle East energy supply chain to escalate rapidly. Brent crude oil prices broke through $94 per barrel in Wednesday trading, setting a new high for the year.
The US Department of Defense confirmed that an allied freighter was attacked by missiles in the southern Red Sea. Although no casualties were caused, it triggered a chain reaction in the energy market.
Safe-haven assets also rose, with gold rising to $2,042 per ounce, the U.S. dollar index rebounding to 105.6, and the yen and Swiss franc also strengthening.
Emily Craig, chief analyst at Stonebridge Commodities in London, noted:
“Oil prices have reflected the market’s expectation that the conflict in the region has the risk of protracted development, especially if it involves Iran or Saudi Arabia, which will directly threaten the shipping safety of one-third of the world’s crude oil.”
📉 Market reaction at a glance:
| Market Segment | Changes |
|---|---|
| Brent Crude Oil | Increased to $94.15/barrel (+3.6%) |
| Spot Gold | Rising to $2,042/oz |
| S&P 500 Futures | Down 0.9% |
| US Dollar Index DXY | Rising to 105.6 |
| Asia Pacific Market | South Korea's KOSPI and Nikkei 225 both fell by more than 1.3% |
🛡 Investor strategies turn conservative
Affected by this, institutional investors accelerated their position adjustments. Data shows:
Inflows into U.S. Treasuries and gold ETFs rose significantly
High-yield bond and emerging market equity and bond funds see redemptions
Geopolitical uncertainty once again reminds the global market that even when macroeconomic policies are relatively stable, unexpected events may still become triggers for systemic risks. The return of risk aversion is expected to dominate the pricing logic of global assets in the short term.
Written by: Sami Al-Fahd , Middle East financial correspondent
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