Brent crude oil reached $117.42 per barrel on October 23, marking its highest price point since April. This surge follows attacks by Houthi forces on Saudi Arabia and an oil spill near the United Arab Emirates, which have heightened concerns regarding regional shipping security.
Market instability has impacted major indices and digital assets. On Thursday, the Nasdaq fell by 2.6 percent, while the S&P 500 declined by 1.2 percent. Bitcoin prices dropped toward $81,400, accompanied by crypto liquidations totaling $441 million.
Investors are monitoring potential military actions involving the United States and Iran, which could target energy infrastructure after the November 3 elections. Rising energy costs contribute to inflation expectations, potentially influencing the Federal Reserve to maintain restrictive interest rates.
Historical data from MSCI indicates that US stocks have gained an average of 12 percent in the six months following the past 13 midterm elections. However, current market direction remains sensitive to geopolitical developments in the Middle East, which may impact oil prices and asset valuations.
