A wave of relief has hit financial markets after threats of a devastating escalation of the war were replaced by a temporary truce, according to Wealth Club’s Chief Investment Strategist Susannah Streeter.<\/p>\n
European stock markets soared at the start of trading this morning as investor relief indices surging.<\/p>\n
The Dublin market also opened with strong gains, jumping by 5.8%.<\/p>\n
Among the big gainers were Ryanair, Kingspan, Cairn Homes and Glenveagh Properties.<\/p>\n
The Frankfurt index surged 5%, shares in Paris rallied 4.3% and London jumped 2.6 in early deals, with airlines among the biggest gainers as oil prices plunged.<\/p>\n
However Ms Streeter warns it is still a highly unpredictable situation and deep damage has already been done.<\/p>\n
Speaking on RT\u00c9’s Morning Ireland, she said this is also being reflected in oil prices.<\/p>\n
“Iran will reopen the Strait of Hormuz under the deal, a pledge which sparked a sharp fall in Brent crude from above $110 a barrel to $91,” she said.<\/p>\n
“but it’s been creeping higher, as realisation dawns that allowing more tankers through won\u2019t relieve the energy squeeze immediately,” she said.<\/p>\n
“Oil and gas facilities have been damaged across the Gulf, refining capacity has been badly disrupted and there\u2019s a long global queue of demand,” Ms Streeter added.<\/p>\n
She said it could take years for supplies to be restored to pre-conflict levels due to the extensive repairs which will need to be carried out.<\/p>\n
“Although prices at the pumps may ease off in the coming weeks, they still could remain stubbornly high if oil prices hang around this level,” she explained.<\/p>\n