ECON Assignments 4.3 Current Events

ECON Assignments 4.3 Extract Principles from Current Events One of the articles I read over the last weeks was the article titled: Oil Prices, Defense Stocks Rise as Israel-Hamas Conflict Rattles Markets; Havens like gold and global bonds jump; airline stocks slide. by Eric Wallerstein, published online in Wall Street Journal (Online); New York, N.Y.. 09 Oct 2023. Link: Q/31?accountid=27877 Any rumor of war in the Middle East directly affects the global financial market. In the specific case of Israel's war against the terrorist group Hamas, it immediately affected the first market that always suffers in the region. That of international oil trade. In the article, the journalist gives a brief, quick approach to the start of the war and its impact on the market and oil prices and other markets as well. The wars in that region cause concern about the supply of oil. In this first moment of war, the value of a barrel of oil rose considerably. On the other hand, in the airline market there was a drop in company values due to the large number of flight cancellations to the region. The truth is that at first the market was not affected that much, in general the stock market did not undergo major changes, despite the impact on energetic and aviation companies. The next few weeks will be crucial to define how much the market, and we as consumers, at the other end of this chain could be affected, if the war lasts for a long time, if other oil producing countries enter this war, in addition to the lives that could be lost. prematurely, the market can face big losses and bigger crises can afflict us. At this time, we have to trust in God and the leaders of established nations so that peace is restored in the region and terrorism ceases.
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