Investors first fled on a broad front from all risky assets, such as stock markets and small currencies – including the krona – and the oil price’s already high risk premium was increased.
But the market effects subsided quickly – even though before the last trading day of the week there are significant negative figures on stock exchanges around the world.
On Iranian television, the explosions in Isfahan were explained as sounds from when the Iranian air defense shot down “small†suspicious flying objects.
Iranian state media reported at eight o’clock Swedish time that the night’s flight restrictions in the airspace above Isfahan and Tehran had been removed. At the time, the International Atomic Energy Agency IAEA had also confirmed Iranian television reports that the nuclear facilities in the area were not damaged.
However, the immediate market reaction was strong, as the market is in full swing after Iran’s extensive drone and robot attack against Israel last weekend.
Photo: Amr Nabil/AP
The oil price rose the most 4.6 percent from 87 dollars per barrel to around 91 dollars per barrel. But when the wave of anxiety subsided, the oil price had fallen back to 89 dollars per barrel.
The price of gold – a common refuge for investors in times of trouble – also rose sharply for the first time, from $2,375 to $2,418 per ounce (31.1 grams). But it then fell back to $2,381 an ounce.
The Swedish krona took a hit in the turbulence that arose on the currency market after the information about the attack. The dollar – which also rose against other currencies – cost at most 11.03 kroner, but the krona recovered a few cents when the wave of anxiety wore off and at eight o’clock it was the exchange rate around 11 kroner per dollar.
A few hours before the information about heavy explosions in Iran, the rating institute S&P Global lowered the credit rating of the Israeli state to A-plus, from AA-minus, citing effects of the conflict between Iran and Israel.
“The recent increased confrontation with Iran increases the already elevated geopolitical risks for Israel,†writes S&P Global in a press release.
Follow the development in DN’s direct reporting
