Author: Dr Issac PJ

Bitcoin and the broader cryptocurrency market extended their decline over the weekend as escalating tensions in the Middle East pushed crude oil prices sharply higher, reigniting inflation fears and prompting investors to pull back from risk assets.The world’s largest cryptocurrency fell to around $67,000 on Sunday from last week’s high of about $74,000, marking a drop of nearly 10 per cent in a matter of days. The sell-off reflects a broader retreat across digital assets as geopolitical uncertainty and surging energy prices reshape global market sentiment.An index tracking the top 20 cryptocurrencies declined 1.29 per cent over the past 24…

Gold prices resumed their upward march on Thursday as escalating geopolitical tensions in the Middle East drove investors back into safe-haven assets, highlighting the precious metal’s enduring appeal during periods of global uncertainty.Spot gold rose 0.4 per cent to about $5,153 per ounce, recovering part of the previous session’s losses as investors sought protection from rising geopolitical risks and market volatility. The rebound came after bullion had retreated from recent highs above $5,400 per ounce, a pullback widely viewed as profit-taking following one of the most dramatic rallies in precious metals in recent years.The renewed buying reflects a familiar pattern…

Global oil markets are bracing for a potential supply shock as the escalating conflict in the Gulf threatens to remove millions of barrels of crude from the market while pushing prices sharply higher.Analysts warn that production losses could exceed 3 million barrels per day within days and rise above 4 million barrels per day if the disruption drags on, tightening supplies in a market already on edge over security risks in the region.Oil prices have already begun climbing as attacks on tankers, refinery disruptions and the near halt of shipping through the Strait of Hormuz choke off vital energy flows…

Bitcoin staged a strong rebound this week, surging past $73,000 as easing geopolitical fears and renewed political support for the digital asset sector triggered a broad relief rally across cryptocurrency markets.The world’s largest cryptocurrency climbed as much as 8 per cent to $73,777, its highest level in about a month, after briefly sliding below $63,000 during the recent bout of global market turbulence triggered by escalating tensions in the Middle East.The rebound highlights how closely digital assets are tied to shifts in global risk sentiment. As concerns about a prolonged shock to energy markets began to ease and investors returned…

The escalating conflict involving Iran has triggered a sharp surge in war-risk insurance premiums for shipping and aviation across the Gulf, but the overall financial impact on insurers in the GCC is likely to remain limited for now, according to Moody’s Ratings.The ratings agency said the credit outlook for GCC insurers remains stable in the near term, largely because the conflict is expected to be relatively short-lived. Moody’s baseline scenario assumes hostilities will last only a few weeks, allowing navigation through the Strait of Hormuz and regional air traffic to gradually return to normal.“We expect the near-term credit impact of…

The UAE’s non-oil private sector gathered fresh momentum in February, with business activity and new orders driving the strongest expansion in a year and reinforcing the country’s reputation as one of the region’s fastest-growing diversified economies.The latest survey by S&P Global showed the seasonally adjusted UAE Purchasing Managers’ Index (PMI) edging up to 55.0 in February from 54.9 in January, marking the highest level in 12 months and signalling a robust improvement in operating conditions across the non-oil economy. Any reading above 50 indicates expansion.The data underscores the continued resilience of the UAE’s diversified economic model, where sectors such as…

[Editor’s Note: Follow media live blog amid Israeli, US strikes on Iran for the latest regional developments.]The sudden escalation of hostilities in the Middle East and the temporary closure of key air corridors have dealt a sharp blow to the Gulf’s thriving tourism and aviation sectors, halting flights across some of the world’s busiest global transit hubs and leaving thousands of travellers stranded.Industry analysts say the region — particularly the UAE and Dubai — has repeatedly demonstrated a remarkable ability to rebound from crises, suggesting the tourism downturn could prove temporary once hostilities subside.The conflict triggered widespread disruption across the Middle East…

The escalating Middle East conflict is beginning to strain financial systems across the region, but the UAE enters this period of heightened uncertainty with significant fiscal buffers, alternative oil export routes and strong banking liquidity that position it more resiliently than many peers, according to a new bulletin from S&P Global Ratings. While the report does not constitute a formal rating action, S&P said the gravity of the situation has shifted from “high” to “severe” under its predefined stress scenarios. That shift reflects a growing risk that prolonged hostilities could weaken credit quality across governments, banks and corporations — particularly if…

The closure of the Strait of Hormuz has dramatically accelerated the pace of the global oil price surge, transforming what began as a geopolitical risk premium into a fast-building supply shock with the potential to push crude decisively towards — and possibly beyond — $100 per barrel.Global energy markets were rattled after Iran’s Revolutionary Guard declared the strategic waterway closed, triggering an immediate scramble across trading desks. With nearly a third of global seaborne crude exports passing through the strait in 2025, the blockade represents not just a symbolic escalation but a direct threat to physical supply flows.The reaction has…

Middle Eastern sovereign credit ratings have enough buffers to absorb a short-lived regional conflict, but a prolonged escalation that disrupts energy exports or damages key infrastructure could trigger rating pressure across parts of the region, according to a new assessment by Fitch Ratings. Notably, the UAE stands out as comparatively well positioned to weather short-term shocks, thanks to strong fiscal buffers, diversified revenue streams and robust sovereign wealth assets.In a report issued from London on March 2, Fitch said its baseline scenario assumes the current conflict will last less than a month. The duration, it noted, will depend on the extent…