Gold and other <a href="https://www.wionews.com/business-economy/gold-hits-two-month-peak-on-dollar-weakness-us-strikes-270962">safe-haven</a>&nbsp;assets including Oil prices increased over&nbsp;$2 a barrel on Friday because of&nbsp;the US&nbsp;killing of a top <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">Iranian commander</a> in an airstrike in Iraq ratcheted up tensions between the two national powers.&nbsp;

Traders were clearly spooked. The death of Iranian <a href="https://www.wionews.com/world/president-trump-ordered-action-against-irans-quds-force-commander-soleimani-us-department-of-defence-271773">Major-General Qassem Soleimani</a>, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge.

Europe's <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">stock markets</a> fell 0.5 per cent&nbsp;in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September.

The Middle East-focused oil markets saw the most dramatic moves. <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227&amp;sa=U&amp;ved=2ahUKEwiN_7-hm-fmAhU0yzgGHRcGDn8QFjACegQICBAC&amp;usg=AOvVaw0VUxWW0N1ASYhJBKQq-jha">Brent crude</a> futures jumped nearly $3 to $69.16 a barrel,&nbsp;also the highest since September,&nbsp;before easing back to $68.42.

"We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said <a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">Jeffrey Halley</a>, senior market analyst for Asia Pacific at broker OANDA.

"I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts."

Soleimani's Quds Force and its paramilitary proxies, ranging from <a href="https://www.wionews.com/opinions/the-killing-of-iranians-general-qasem-soleimani-and-its-consequences-271884">Lebanon's Hezbollah</a> to the PMF in Iraq, have ample means to mount a multi-pronged response.

In September, US&nbsp;officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats.

German Bunds and US&nbsp;Treasuries,&nbsp;the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US&nbsp;10-year yields fell 5 basis points to a three-week low.

The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent&nbsp;year-on-year in December, beating analyst expectations for a 1.4 per cent&nbsp;rise.

"Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in <a href="https://www.wionews.com/business-economy/german-court-bans-uber-services-via-rental-cars-in-germany-269165">Frankfurt</a>. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region."

The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US&nbsp;Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US&nbsp;embassy in Baghdad.

Gold, a traditional refuge for risk-averse investors, rose 1 per cent&nbsp;to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase.

"After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at <a href="https://www.wionews.com/business-economy/indian-shares-slip-on-year-end-profit-booking-nifty-set-for-13-jump-in-2019-271230">Anand Rathi Shares</a> &amp; Stock Brokers in Mumbai.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers. Traders were clearly spooked. The death of Iranian Major-General Qassem Soleimani, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge. Europe's stock markets fell 0.5 per cent in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September. The Middle East-focused oil markets saw the most dramatic moves. Brent crude futures jumped nearly $3 to $69.16 a barrel, also the highest since September, before easing back to $68.42. "We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said Jeffrey Halley, senior market analyst for Asia Pacific at broker OANDA. "I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts." Soleimani's Quds Force and its paramilitary proxies, ranging from Lebanon's Hezbollah to the PMF in Iraq, have ample means to mount a multi-pronged response. In September, US officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats. German Bunds and US Treasuries, the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US 10-year yields fell 5 basis points to a three-week low. The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent year-on-year in December, beating analyst expectations for a 1.4 per cent rise. "Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in Frankfurt. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region." The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US embassy in Baghdad. Gold, a traditional refuge for risk-averse investors, rose 1 per cent to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase. "After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at Anand Rathi Shares & Stock Brokers in Mumbai.

Global Markets: Oil, gold, safe haven assets prices rose as US strike kills Iranian commander

The powerful Lebanese Shi'ite group Hezbollah believes a solution to be "very close" for the country's impasse over forming a new government, one of its senior officials said on Wednesday, following nearly eight months of political wrangling.

Lebanese politicians have been unable to agree a new government since a general election in May as rival parties have competed over the allocation of cabinet positions, further unsettling the country's fragile economy.

Hezbollah, a heavily armed, Iran-backed movement set up in the 1980s to combat Israeli occupation, started taking part in electoral politics in the 1990s and is the most powerful group in the country.

"We believe the solution is very close," said Mahmoud Qamati, deputy head of the group's political council, and suggested it could happen in time to be considered "a holiday gift". "The intentions held by everybody are positive and for the benefit of the country," he added.

On Tuesday, Prime Minister-designate Saad al-Hariri said he and President Michel Aoun had met and were "determined to form a government", state news agency NNA reported.

A breakthrough to create a national unity government in line with Lebanon's sectarian power-sharing system seemed close last month, but it did not work out and the deadlock resumed. However, Hariri said on Sunday he still believed the government would form early in the new year.

The lack of a government has caused particular concern because Lebanon faces both structural economic problems and regional instability.

Lebanon has the world's third-highest level of debt to GDP and Finance Minister Ali Hassan Khalil said on Sunday it faces an economic crisis that he warned could turn into a financial one.

Hariri has pledged to carry out economic reforms that could unlock billions of dollars of international investment in Lebanese power, transport and data infrastructure, aimed at boosting the economy after years of weak growth.

The International Monetary Fund has stressed the importance of Lebanon putting its debt on a sustainable footing, while bond yields and the cost of insuring against Lebanese sovereign debt have shown signs of stress in recent months.

Last month, Israel uncovered several tunnels it said Hezbollah had dug under the border, adding to tensions between the countries some 12 years after Israel and Hezbollah fought a war on Lebanese soil.

Qamati said the government formation was beneficial "particularly in light of the Israeli dangers".

The latest hitch in efforts to form a government came over Sunni Muslim representation in the cabinet. Hariri said on Tuesday that only one difficulty remained and that he and Aoun were working to solve it.

The powerful Lebanese Shi'ite group Hezbollah believes a solution to be "very close" for the country's impasse over forming a new government, one of its senior officials said on Wednesday, following nearly eight months of political wrangling.

The powerful Lebanese Shi'ite group Hezbollah believes a solution to be "very close" for the country's impasse over forming a new government, one of its senior officials said on Wednesday, following nearly eight months of political wrangling. Lebanese politicians have been unable to agree a new government since a general election in May as rival parties have competed over the allocation of cabinet positions, further unsettling the country's fragile economy. Hezbollah, a heavily armed, Iran-backed movement set up in the 1980s to combat Israeli occupation, started taking part in electoral politics in the 1990s and is the most powerful group in the country. "We believe the solution is very close," said Mahmoud Qamati, deputy head of the group's political council, and suggested it could happen in time to be considered "a holiday gift". "The intentions held by everybody are positive and for the benefit of the country," he added. On Tuesday, Prime Minister-designate Saad al-Hariri said he and President Michel Aoun had met and were "determined to form a government", state news agency NNA reported. A breakthrough to create a national unity government in line with Lebanon's sectarian power-sharing system seemed close last month, but it did not work out and the deadlock resumed. However, Hariri said on Sunday he still believed the government would form early in the new year. The lack of a government has caused particular concern because Lebanon faces both structural economic problems and regional instability. Lebanon has the world's third-highest level of debt to GDP and Finance Minister Ali Hassan Khalil said on Sunday it faces an economic crisis that he warned could turn into a financial one. Hariri has pledged to carry out economic reforms that could unlock billions of dollars of international investment in Lebanese power, transport and data infrastructure, aimed at boosting the economy after years of weak growth. The International Monetary Fund has stressed the importance of Lebanon putting its debt on a sustainable footing, while bond yields and the cost of insuring against Lebanese sovereign debt have shown signs of stress in recent months. Last month, Israel uncovered several tunnels it said Hezbollah had dug under the border, adding to tensions between the countries some 12 years after Israel and Hezbollah fought a war on Lebanese soil. Qamati said the government formation was beneficial "particularly in light of the Israeli dangers". The latest hitch in efforts to form a government came over Sunni Muslim representation in the cabinet. Hariri said on Tuesday that only one difficulty remained and that he and Aoun were working to solve it.

Lebanon's Hezbollah believes solution to government impasse 'very close'

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Global Markets: Oil, gold, safe haven assets prices rose as US strike kills Iranian commander

Lebanon's Hezbollah believes solution to government impasse 'very close'