Dollar, Financial Markets, and Oil Affected by Hurricane Irma

The devastating Hurricane Irma, with speeds exceeding 290 kilometers per hour, has so far resulted in at least 14 deaths and widespread destruction in the Caribbean islands, and is approaching Florida and other areas in the Caribbean. Irma is the most powerful hurricane recorded in the Atlantic. Over the past week, this hurricane has increased the price of Brent crude oil by seven percent, bringing it to about $55, with an additional 21-cent increase on Friday, September 8. Prior to Irma, Hurricane Harvey in Texas caused 25 percent of the country's refining capacity to shut down and an 8 percent reduction in U.S. oil production in late August, leading to a rise in global oil prices over the past two weeks. Eugen Weinberg, head of the Commodity Research Center at Commerzbank Germany, told Reuters that he expects the impact of both hurricanes on refineries and oil demand in the U.S. to last. Hurricane Irma has also significantly impacted financial markets, with the dollar reaching its lowest value since early 2015. Bloomberg reports that U.S. stock market values have declined, and observers are awaiting the consequences of Hurricane Irma on Florida's economy. The hurricane is expected to reach Florida on Saturday. Meanwhile, an 8.2 magnitude earthquake in southern Mexico has resulted in 15 deaths and tsunami warnings have been issued for the country and its neighbors. Irma is also expected to reach Mexico by tomorrow. The occurrence of these severe natural disasters in the U.S. has led to declines in stock values, with the S&P 500 dropping about 0.21 percent, Dow Jones by 0.17 percent, and Nasdaq stocks by 0.11 percent. The Mexican stock market (Bolsa) also saw a 0.14 percent drop. The dollar's value decreased by about 0.3 percent, and the value of the Mexican peso fell by 0.1 percent. However, the value of the euro, British pound, and Japanese yen against the dollar increased by 0.2 percent, 0.8 percent, and 0.7 percent, respectively. The International Red Cross states that so far 1.2 million people have suffered injuries and financial losses due to Hurricane Irma and warns that this devastating storm could threaten the lives of 26 million more people in the U.S. and the Caribbean. In this context, Hurricane Irma is moving towards Florida after devastating the Caribbean islands. The 'extremely dangerous' Irma has reached Barbuda in the Caribbean, and tsunami warnings have been issued following the 8-magnitude earthquake off the southern coast of Mexico.