- Instability in the Middle East resumed during the weekend as Hamas attacked Israel.
- This war could push the price of crude oil sharply higher on Monday.
- Rising inflation could push cryptocurrencies like Chainlink, Monero, Algorand lower.
The biggest news during the weekend was the start of the Israel and Hamas war in the Middle East. The war started after Hamas invaded Israel in a surprise attack that left hundreds of people dead. So, how will this war affect cryptocurrencies like Chainlink, Algorand, and Monero.
Israel-Hamas war
The war in Israel has no direct impact on cryptocurrencies. However, its implications will be felt across all asset classes like crypto, commodities, and stocks. The key impact will be on commodities because of the region’s role in the crude oil market.
Indeed, the price of crude oil surged by more than 4% on Monday morning, with Brent rising to $87.72 and West Texas Intermediate (WTI) hitting $86. Oil rose as investors anticipated supply disruptions in the region.
At the same time, important deals in the Middle East could be paused or ended. The Wall Street Journal (WSJ reported that Saudi Arabia was considering boosting its oil supplies if it clinched a deal with the US and Israel.
Iran has also been normalizing relations with the US. Just a few weeks ago, it released a few hostages in exchange for $6 billion in cash. Therefore, all these deals could be slashed in the coming days.’
Read more: How to buy Algorand.
War could boost inflation
The surging crude oil price means that inflation will remain at an elevated level for a while. The most recent data showed that the headline US consumer price index (CPI) jumped to 3.7% in August. It likely retested 4% in September as gasoline prices jumped.
Higher inflation figures coupled with strong jobs means that the Federal Reserve will likely maintain its hawkish tone in the coming months. Cryptocurrencies like Bitcoin, Chainlink. Algorand, and Monero thrives when the Federal Reserve is a bit dovish.
Therefore, the war in Israel could have an impact on these coins. For example, Monero price has jumped to a high of $156.45, the highest point since August 15th. It has jumped by more than 14% from the lowest level this month.
Read more: How to buy Monero.
Chainlink price, on the other hand, surged to a high of $8.25, ~43% above the lowest point in September. Similarly, Algorand price has jumped by over 10% from its lowest level this year.
Still, there is also a likelihood that cryptocurrency prices will continue doing well even as the war rages on. For one, these coins have recently reacted mildly to important events recently. They were unchanged after the US published strong jobs numbers on Friday.
