Middle East sectarian conflict escalated once again, which shocks the international market.

 

 

Affected by aggravate tensions between regions, WTI oil prices jumped by about 3 percent to $ 38.10 per barrel. Brent crude also rose more than 2%.

Spot gold rose 0.3 percent. It touched 120.30 the yen against dollar , top of ten months, the S & P 500 Index futures rose 0.3 percent.

Tungsten prices rises in short term, but it is bound to be affected because of this incident. And it may rise again due to the affection of production cost in the next period of time.

 

Three of Saudi Arabia's close allies joined the kingdom Monday in severing or downgrading diplomatic ties with Iran, and a UN envoy will visit Riyadh and Tehran in a bid to diffuse tension in the region.

Bahrain and Sudan announced to cut diplomatic relations with Iran on Monday, accusing Tehran of interfering in the Arab states' internal affairs.

The United Arab Emirates (UAE) has decided to downgrade its diplomatic relations with Iran and reduce the number of Iranian diplomats in the country.

On Sunday, Saudi Arabia cut off its diplomatic relations with Iran after angry protesters stormed its embassy in Tehran to protest the execution of prominent Shiite cleric Nimr al-Nimr.

Saudi Foreign Minister Adel al-Jubeir announced Monday that his country will cease air traffic with Iran, placing a travel ban for its citizens, reported Al Arabiya.

 

The top Saudi diplomat also said that commercial ties with Iran are also severed.