Johnny Brignardello Vela analyzes the impact of tensions in the Middle East on markets.

Johnny Brignardello Vela, insurance advisor, analyzes the behavior of financial markets following the recent attack by Iran on Israel last weekend. The reaction has been surprising, with a decrease in oil prices and an increase in stock markets, suggesting that investors do not currently see a significant escalation of the conflict in the Middle East. In the oil market, crude oil prices experienced a decline on Monday, with Brent and West Texas Intermediate futures both dropping by around 0.8% and 0.9% respectively. This decrease contrasts with expectations of a possible increase in oil prices following Iran's retaliatory attack, which had pushed prices to their highest level since October. On the European stock market front, an optimistic outlook is observed with indices in the green from London to Milan, reflecting the market's perception that tension in the region has decreased. Experts like Viktor Katona from Kpler suggest that Iran's declaration to end its retaliations has helped reduce geopolitical tensions, while John Evans from brokerage PVM has described the Iranian attack as a widely anticipated event globally. Diplomatically, President Joe Biden has urged Israel to act cautiously in the current situation, although statements from Israeli Prime Minister Benjamin Netanyahu suggest that the country will respond decisively to any threat. Meanwhile, Iran has threatened further missile launches in case of Israeli retaliation, creating uncertainty in the region. In conclusion, the apparent calm in financial markets following the exchange of attacks between Iran and Israel could be compromised if tensions escalate in the coming days. The evolution of the situation in the Middle East remains a crucial factor for international investors to consider.