Israel launched a surprise attack on Iran on June 12, triggering global market turmoil. The Israeli government described the assault as a "preemptive strike" against what it claimed was Iran’s advancing nuclear weapons program. Explosions were reported across Tehran following the attack.
Israel Braces for Retaliation
In response to the escalating tensions, Israel’s defense minister declared a state of emergency and said the country was preparing for possible retaliation from Iran. Meanwhile, U.S. Secretary of State Marco Rubio confirmed the United States was not involved in the strikes and cautioned Iran against targeting American assets or personnel.
Impact on Oil Prices
The conflict immediately jolted commodity markets. Crude oil surged about 5% (at the time of writing), reflecting investor fears over supply disruptions from Iran, OPEC+’s third-largest producer.
Country ETFs to Gain/Lose
Against this backdrop, below-mentioned country-based exchange-traded funds (ETFs) may gain/lose.
ETFs to Gain
Norway – iShares MSCI Norway ETF ENOR
Norway is among the top 10 nations famous for oil exports and with its comparatively low population, oil forms the key part of the country’s GDP. Per U.S. Energy Information Administration (EIA), Norway is the largest oil producer and exporter in Western Europe.The oil and gas sector makes up around 22% of Norwegian GDP and 67% of Norwegian exports.
Canada – iShares MSCI Canada ETF EWC
Canada is also among the world’s top 10 oil producers. The oil, gas and mining sector makes up about over a quarter of Canada’s economy. The country is one of the world's largest producers of dry natural gas.
ETFs to Lose
India – iShares India 50 ETF INDY
India is almost entirely dependent on imports to back its oil needs. An oil price rally could thus be a major deterrent to India investing.
Turkey – iShares MSCI Turkey ETF TUR
Normally, Turkey’s 90% of the crude requirements are satisfied by imports. In any case, the country’s economy has been suffering from high inflation.
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iShares India 50 ETF (INDY): ETF Research Reports iShares MSCI Turkey ETF (TUR): ETF Research Reports iShares MSCI Canada ETF (EWC): ETF Research Reports iShares MSCI Norway ETF (ENOR): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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