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.
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
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.