After President Trump authorized a military strike killing a top Iranian military commander, the escalating conflict sent stocks down around the world, and oil and gold prices up on the first Monday of the new year.
Brent oil prices, the international benchmark, hit the $70 mark for the first time in three months and the price of West Texas Intermediate, the American oil benchmark, reached more than $63 a barrel after the Pentagon's announcement confirming an airstrike at Baghdad's airport. Crude oil last hit the $70 mark in September after drones suspected to have been launched by Iran struck Saudi Arabian oil plants. Saudi Arabia, Iran, and Iraq account for almost half of the world's oil reserves.
Prices are up amid a growing list of concerns after the killing of Gen. Qassem Soleimani: Iran may close the Strait of Hormuz, has already threatened retaliation, and said it will no longer abide by the 2015 nuclear deal the U.S. withdrew from two years ago, and Iraq voted to expel U.S. troops. The State Department warned of a "heightened risk" of a missile attack near U.S. bases.
It is unclear how Iran will respond to Trump's unilateral move. Oanda's Jeffrey Halley noted that "a big fat dollop of geopolitical uncertainty has landed on investors desks" in a report.
But J. Jay Park, CEO of ReconAfrica, said the geopolitical uneasiness isn't, alone, enough to continue driving oil prices up. He said what may continue to drive up prices is a change in supply. Park said supply, demand, OPEC decisions and compliance, geopolitics, and public sentiment about those four items affect oil prices. Uncertainty in Iran, coupled with a change in supply or demand may change the game. Iran may choose to close the Strait of Hormuz, a move Britain has forestalled by sending the Royal Navy to help ships pass through the Strait, through which 21 percent of 2018's global petroleum liquids consumption flowed.
"If that were to happen, the sky's the limit, over $100 easily," Park told Cheddar on Monday.
With the region on edge, stocks fell in Japan, Hong Kong, South Korea, and across European markets.
In the meantime, Park said the current crisis may not drive up oil prices further.
"In the recent past we've seen a number of conflicts, for example the suspected Iranian attack on Abqaiq in Saudia Arabia, that kind of underwhelmed in terms of the extent to which these changes affected the overall price and how long that effect lasted," he said.
With real estate being a largely male-dominated industry, Stephanie Shojaee, vice president and chief marketing officer at development company Shoma Group, joined Cheddar News to discuss how she took on the gender gap for women to achieve leadership roles, starting at her own company. “It's been very important to teach all the women that work here, especially the younger ones, that they shouldn't change themselves," she said. "You need to be happy with who you are and just keep breaking barriers."
We are already starting to feel the effects of summer. Heat waves in Texas and California are already sending temperatures soaring. That could spell trouble for the nation's power supply. there are new concerns about outages in many areas of the country. Cheddar's Shannon Lanier explains the two main causes of blackouts, and what states are doing to keep the lights on and the air conditioning running.
Pinterest is making a big move as it pushes further into online shopping. The image-focused social media site is acquiring A.I.-powered shopping platform THE YES as it focuses on enhancing the user shopping experience. THE YES's technology gives users a personalized feed of products based on their preferences, and Pinterest is banking on the tech to give it an advantage among other social media apps with built-in shopping features. Julie Bornstein, founder and CEO of THE YES, joins Closing Bell to discuss the company's unique technology, why it agreed to sell to Pinterest, her vision as she takes over shopping initiatives, and more.
Keith Barr, CEO of InterContinental Hotel Group, says he is expecting an 'incredible' summer for his business as pandemic conditions have normalized and people are ready to travel.
Dann Ryan, Chief Investment Officer at Sincerus Advisory, discusses what drove markets lower on Wednesday, as well as what investors are anticipating when it comes to the upcoming CPI report and Fed decision.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew
in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
CreditCards.com senior industry analyst Ted Rossman compares the Apple Pay Later offering to similar four-step processes at Affirm and Klarna, and says this is a way for the tech giant to dive deeper into the financial industry.
