Crisis in the Gulf as Saudi Arabia and Qatar Face Off – How Will the Financial Markets React?

Energy markets were volatile and middle east stock markets remain weak as investors weigh the impact of a diplomatic spat that could have major consequences. Despite short term gains for oil, prices moved back well below $50 per barrel, and while there appear to be no immediate implications for Qatar’s participation in the recent OPEC deal to cut production, the dispute does present other strategic challenges.

The question is will the crisis blow up and move the markets to risk off trading sending the USD and the Japanese yen up and pushing gold to new short term highs. To date most of the global markets have taken the moves in stride, but when will the crisis flow over to the rest of the markets. Investors have flocked to the precious metal over the past week, as the Gulf Crisis sees the rifts between Middle East countries growing. Investors traditionally head for safe haven assets during times of political and market turmoil, with the metal considered a safe house for cash

Barry Norman 
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.