On Wednesday,The European Central Bank, U.S. Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland took coordinated action to ease the strains on the world’s financial system, saying they would make it easier for banks to get dollars if they need them.
While the world is cheering the announcement with stock markets and the euro rose sharply, you should peel your eyes away from eurozone for a moment and take a look at another crisis – which may just have enough potential impact to the global financial system.
Heightening political tensions in Iran have become a focal point, with the potential of economic sanctions including a ban on imports from one of the world’s leading Oil exporters appearing to have supported Crude Oil futures prices.
With US troops leaving Iran, the balance of Middle East may be disrupted. The uncertainties have clearly been reflected in the market. The Oil price is creeping back silently in the past month and both WTI and Brent Crude Oil have crossed US$100!