Market analysts react to US, British strikes against Houthis in Yemen
investing.com(Reuters) — The United States and Britain launched strikes from the air and sea against Houthi military targets in Yemen in response to the movement's attacks on ships in the Red Sea, a dramatic escalation of the Israel-Hamas war in Gaza.
Oil climbed [MKTS/GLOB] and stock markets tensed on the news.
Comments from investors and analysts:
KHOON GOH, HEAD OF ASIA RESEARCH, ANZ, SINGAPORE
«I think at this stage, it's difficult to predict. Whilst the attacks have already seen disruptions and diversions of shipping and that has already caused quite a sharp jump in shipping freight rates just in the last few weeks, if this strike is able to...resolve the issue and shipping lanes can be secured again and things normalise, then that'll be positive as we'll see a normalisation of freight rates.
»I think the concern is that if this starts to escalate… which will cause a potential spike up in oil price in particular, and further disruptions in shipping lanes.
«Markets are taking a wait-and-see approach for the time being, hence we're not seeing too much of a reaction. If we see a massive escalation of the situation...then the traditional flight-to-safety will see U.S. Treasuries, safe-haven currencies like yen and Swiss franc benefit.»
SHANE OLIVER, CHIEF ECONOMIST, AMP (OTC:AMLTF), SYDNEY
«The U.S. and UK launching air strikes on Houthis in Yemen is adding to the risk of Iran being directly drawn into the conflict which would threaten oil supplies.
»The creeping widening in the Israel/Hamas conflict poses a risk to global growth and inflation, for example Houthi attacks on Red Sea shipping adding to transport costs as ships have to go around Africa.
«A weaker patch is often evident into February or March after seasonal strength
Read more on investing.com
