The Israel-Hamas conflict has had a significant impact on global financial markets, with stocks, cryptocurrencies, and commodities all seeing fluctuations. U.S. stock indices, including the S&P 500, Dow Jones, Nasdaq, and Wilshire 5000, experienced a decline on Monday. Additionally, the Bank of Israel responded by announcing plans to sell up to $30 billion in foreign currency in order to maintain market stability.
Oil and precious metals have seen an increase in demand, acting as safe havens during times of geopolitical unrest. The Organization of the Petroleum Exporting Countries (OPEC) raised its output projections to 116 million barrels per day by 2045, but has since discussed scaling back oil production due to the conflict.
Cryptocurrencies, on the other hand, have seen a decrease in market capitalization, with major tokens like Bitcoin and Ethereum shrinking by 1.7% and 2.46% respectively against the U.S. dollar. Currencies such as the Israeli shekel have also weakened, while gold and silver have seen an increase in demand.
The long-term effects of the Israel-Hamas conflict on global financial markets remain uncertain. However, it has clearly demonstrated the sensitivity of markets to geopolitical events.
