If the president of Iran passes away, how would this affect global stock markets, gold rates, and oil prices?

Long viewed as the Supreme Leader Ayatollah Ali Khamenei's possible successor, Iranian President Ebrahim Raisi passed away on Sunday in a helicopter accident in steep terrain close to the border with Azerbaijan. In the wake of the announcement, gold reached a record high and crude oil prices continued to rise despite political unrest in the Middle East, the main oil-producing area.

Effects on the Price of Gold

Following the news of the death of the president of Iran, gold prices on Monday reached a record high. When there is uncertainty in the world, investors usually turn to gold as a safe-haven investment, which drives up gold prices.

As of 0811 GMT, spot gold was up 1% to $2,438.44 per ounce, having earlier in the day reached a new high of $2,449.89. Gold futures in the US increased 1.1% to $2,442.60.
In addition to Raisi's passing, the US inflation trend has slowed, which has raised hopes that the US Federal Reserve may soon announce its first interest rate decrease. This has contributed to the increase in gold prices on Monday. Silver reached a high that beyond 11 years as well.

Effect on the Price of Crude Oil

Amid political unrest in key producing nations, international crude oil prices continued their upward trend on Monday as details about the Iran president's helicopter accident became public. Additionally contributing to the increase in oil prices was the crown prince of Saudi Arabia's decision to postpone his trip to Japan due to King's Health. Prior to this, Brent had risen to $84.43, its highest level since May 10, and had gained 41 cents, or 0.5%, to $84.39 a barrel by 0632 GMT.

After peaking at $80.35 earlier in the day, the US West Texas Intermediate (WTI) oil for June saw a 23-cent increase to $80.29 a barrel, the most since May 1. The July contract, which is more active, went up 31 cents, or 0.4%, to $79.89, while the June contract ends on Tuesday.

Due to a health concern with his father, King Salman, Saudi Arabia's Crown Prince Mohammed bin Salman has postponed his planned Monday arrival in Japan, according to Japan's Chief Cabinet Secretary Yoshimasa Hayashi.

According to a Sunday report from Saudi Arabia's official news agency, King Salman, 88, will get treatment for inflammation in his lungs.Effects on Equity Markets

The Middle East's political unpredictability might cause stock market volatility. The markets, however, don't appear to have been affected negatively by Raisi's passing in terms of share prices. Global stock markets rose on Monday following a little dip in US stock indices towards all-time highs, with the Dow Jones Industrial Average closing over 40,000 for the first time.The week began with stronger European markets, with the FTSE 100 in Britain up 0.3% to 8,447.28. The Paris CAC 40 increased by 0.4% to 8,197.72, while the German DAX advanced 0.4% to 18,770.02. The S&P 500 saw a 0.1% increase in its future, while the Dow Jones Industrial Average had a little than 0.1% increase.

Ayatollah Ali Khamenei, the supreme leader of Iran, has named Mohammad Mokhber, the nation's first vice president, as the acting president.

Following an hours-long search across a foggy, hilly region of northwest Iran, the bodies of Iranian President Ebrahim Raisi, the foreign minister, and others were discovered at the scene of a helicopter accident, according to official television. No apparent cause for the crash in the Iranian region of East Azerbaijan was provided by state TV. Alongside Raisi were the governor of the province of East Azerbaijan in Iran, Hossein Amirabdollahian, the foreign minister of Iran, as well as other officials and bodyguards.
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