Fears that the conflict between Israel and Hamas could spiral into a regional conflict stirred oil prices and rattled equity markets, setting the stage for the ASX to slump at the return of trading on Monday.
Oil prices climbed nearly 3 per cent on Friday on worries that a wider conflict could disrupt global crude supplies as the region is among the world’s top oil producers. Markets fear that Iran will be drawn into the fray.leapt 2.8 per cent to $US85.54 on Friday. Economists predict that Brent could climb above $US100 should the situation deteriorate. Meanwhile, gold vaulted over $US2,000 on safe-haven buying.
Mr Boubouras said the high global tensions and inflation pressures place even more pressure on the RBA to lift rates. Compounding the challenges is a weak Australian dollar which has tumbled 7 per cent this year to US63.34¢.