Kyiv Makes First ATACMS Strike in Russia, Ukraine Media Report
Tuesday, Nov 19, 2024 5:35 am ET
4min read Ukraine's military has made its first strike using U.S.-supplied ATACMS missiles on Russian territory, according to Ukrainian media reports. This significant development comes as President Joe Biden's administration has eased restrictions on Ukraine's use of longer-range weapons, allowing deeper strikes into Russia. The ATACMS missiles, with a range of up to 300 kilometers, can target strategic infrastructure, airfields, and ammunition stores, potentially disrupting Russia's military capabilities and supply chains.
The strike marks a crucial shift in the war, as Ukraine seeks to degrade Russia's military capabilities and make it more difficult for them to launch attacks on Ukrainian territory. However, it remains to be seen how Russia will respond to this escalation and whether it will lead to further escalation or a change in the course of the war.
The decision to allow Ukraine to use ATACMS missiles has drawn strong reactions from Moscow, with Kremlin spokesman Dmitry Peskov warning that it could significantly raise the stakes in the conflict. Russia has previously stated that such a move would change "the very nature of the conflict dramatically" (AP News, 2024). This escalation may lead to increased tensions between Russia and NATO, potentially drawing the U.S. and other NATO members into direct conflict with Russia. However, the U.S. has long opposed such a move to avoid escalation, and the decision comes in the waning days of President Biden's term, with President-elect Trump, who has vowed to quickly end the war, set to assume office soon.
The economic and political implications for Russia are significant, as the use of ATACMS missiles by Ukraine could potentially disrupt Russian supply chains, damage infrastructure, and impact the Russian military's ability to resupply and reinforce its troops in Ukraine. Politically, Russia may view this as a direct threat and could respond with increased military action or escalate tensions with NATO.
The global markets are likely to react to the escalation, with potential impacts on commodity prices and financial stability. The use of longer-range missiles could escalate tensions, potentially leading to more severe sanctions and disruptions in energy and commodity markets. J.P. Morgan Research projects a high risk of large energy supply disruptions, with Brent oil price expected to remain elevated between $100-185 bbl (JPMorgan, 2023). Wheat and nickel, prominent exports of both countries, are expected to be most affected (ScienceDirect, 2023). The OECD warns of potential spillovers into global financial markets, driven by heightened geopolitical tensions and uncertainties (OECD, 2023). Investors should monitor these developments and consider adjusting their portfolios accordingly.
As the conflict continues to evolve, investors must stay informed about the geopolitical dynamics and their potential impacts on global markets. The use of ATACMS missiles by Ukraine highlights the importance of understanding the complex interplay between geopolitical tensions, military strategies, and economic consequences. By closely monitoring the situation and adjusting investment strategies accordingly, investors can better navigate the challenges and opportunities presented by the Russia-Ukraine conflict.
The strike marks a crucial shift in the war, as Ukraine seeks to degrade Russia's military capabilities and make it more difficult for them to launch attacks on Ukrainian territory. However, it remains to be seen how Russia will respond to this escalation and whether it will lead to further escalation or a change in the course of the war.
The decision to allow Ukraine to use ATACMS missiles has drawn strong reactions from Moscow, with Kremlin spokesman Dmitry Peskov warning that it could significantly raise the stakes in the conflict. Russia has previously stated that such a move would change "the very nature of the conflict dramatically" (AP News, 2024). This escalation may lead to increased tensions between Russia and NATO, potentially drawing the U.S. and other NATO members into direct conflict with Russia. However, the U.S. has long opposed such a move to avoid escalation, and the decision comes in the waning days of President Biden's term, with President-elect Trump, who has vowed to quickly end the war, set to assume office soon.
The economic and political implications for Russia are significant, as the use of ATACMS missiles by Ukraine could potentially disrupt Russian supply chains, damage infrastructure, and impact the Russian military's ability to resupply and reinforce its troops in Ukraine. Politically, Russia may view this as a direct threat and could respond with increased military action or escalate tensions with NATO.
The global markets are likely to react to the escalation, with potential impacts on commodity prices and financial stability. The use of longer-range missiles could escalate tensions, potentially leading to more severe sanctions and disruptions in energy and commodity markets. J.P. Morgan Research projects a high risk of large energy supply disruptions, with Brent oil price expected to remain elevated between $100-185 bbl (JPMorgan, 2023). Wheat and nickel, prominent exports of both countries, are expected to be most affected (ScienceDirect, 2023). The OECD warns of potential spillovers into global financial markets, driven by heightened geopolitical tensions and uncertainties (OECD, 2023). Investors should monitor these developments and consider adjusting their portfolios accordingly.
As the conflict continues to evolve, investors must stay informed about the geopolitical dynamics and their potential impacts on global markets. The use of ATACMS missiles by Ukraine highlights the importance of understanding the complex interplay between geopolitical tensions, military strategies, and economic consequences. By closely monitoring the situation and adjusting investment strategies accordingly, investors can better navigate the challenges and opportunities presented by the Russia-Ukraine conflict.
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