Markets: Oil rises, Argentine assets fall after Middle East escalation

Global financial markets experienced a downturn on Monday, with oil prices surging due to renewed tensions between the United States and Iran over the weekend. This escalation in the Middle East has cast a shadow over trading floors worldwide, impacting various asset classes.

The Argentine market was not immune to the global trend, showing declines in both its bond and stock markets. The Buenos Aires Stock Exchange fell 0.6%, with notable drops in shares of BBVA, Banco Macro, and Sociedad Comercial del Plata. Argentine companies' American Depositary Receipts (ADRs) trading in New York showed mixed results, though energy stocks like YPF and Pampa Energía saw gains, influenced by the rise in crude oil prices.

Analysts from Portfolio Personal de Inversiones (PPI) noted that the renewed focus on oil prices and increased tension in the Strait of Hormuz could benefit local oil and gas companies but also add volatility to the market. The Brent crude price climbed 9.3% to $83.14 per barrel.

Despite the broader market jitters, Argentina's country risk indicator saw a slight increase of two units, reaching 404 basis points. However, this level remains among the lowest recorded since April 2018. The slight rise is attributed to a fall in dollar-denominated sovereign bonds after investors received capital and interest payments. Invertir en Bolsa (IEB) highlighted that the country risk has compressed further since the presentation of the 2026-2027 financial program, signaling a positive outlook for the market despite upcoming maturities and the presidential election.