Iran has named Mojtaba Khamenei, the hard-line son of the deceased Supreme Leader Ali Khamenei, as its new spiritual and political head, signaling a continuation of stringent policies in the wake of intensifying regional conflict.
The appointment comes amidst an unprecedented global energy crisis. With several Gulf countries reportedly initiating production cuts and the vital Strait of Hormuz effectively closed, the world faces the largest oil supply shock in history, amounting to a staggering loss of 20 million barrels per day. The Group of Seven (G7) nations are now considering releasing their strategic oil reserves in an urgent bid to stabilize markets.
The seismic geopolitical developments sent Brent crude oil prices soaring by 12% to $105 per barrel, triggering a broad sell-off across global equity markets. European stocks are down an average of 2%, while in Asia, China’s main index fell 1% and Japan’s Nikkei 225 plunged 4%. U.S. equity futures are pointing to an open a little over 1% lower.
In currency and precious metals markets, the U.S. dollar strengthened by an average of 0.5% against its main peers, reflecting its safe-haven status amid global uncertainty. Gold, however, saw a 1% decline, trading at $5,100 an ounce, as investors sought liquidity in other assets or faced margin calls.