WEB DESK: Global oil prices rose to their highest level in a month on Monday as renewed military exchanges between the United States and Iran heightened concerns over potential disruptions to energy supplies, while Asian stock markets delivered mixed performances amid growing geopolitical uncertainty.
Brent crude extended last week’s rally, climbing above $91 per barrel for the first time since June 11. US benchmark West Texas Intermediate (WTI) also advanced, with both contracts building on gains of more than four percent recorded at the end of the previous week.
The latest surge followed another weekend of escalating hostilities. The United States launched fresh strikes on Iranian targets, prompting retaliatory attacks by Tehran on military facilities in the Gulf region. Investors remain concerned that continued conflict could threaten shipping through the Strait of Hormuz, a key waterway responsible for transporting roughly one-fifth of global seaborne oil supplies.
Analysts said the renewed tensions have added a geopolitical risk premium to oil markets. However, easing inflationary pressures and signs of a softer US labour market suggest the rise in energy prices may not immediately lead to another broad wave of inflation. The greater concern is that persistently high oil prices could weaken consumer spending and slow economic growth.
Asian equity markets showed mixed results. Chinese stocks continued their recent upward momentum on expectations that Beijing will introduce additional measures to stimulate the economy following last week’s economic data.
Hong Kong’s Hang Seng Index gained more than 2%, while Shanghai’s Composite Index rose 1.32%. Markets in Taipei, Manila and Singapore also finished higher.
Elsewhere in the region, sentiment remained cautious. Shares in Seoul, Sydney and Wellington traded lower, reflecting investor uncertainty over the evolving situation in the Middle East.
The mixed performance followed a weak finish on Wall Street on Friday, where the Dow Jones, S&P 500 and Nasdaq all closed lower as investors continued reducing exposure to technology stocks while monitoring geopolitical developments.
In precious metals, gold slipped 0.40% despite ongoing global tensions, while silver added 1.00%.
Market Snapshot (0230 GMT)
Brent crude: Up 2.70% to $90.48 per barrel
West Texas Intermediate: Up 2.46% to $84.52 per barrel
Hong Kong Hang Seng: Up 2.31% to 25,128.81
Shanghai Composite: Up 1.32% to 3,813.68
Euro/Dollar: Unchanged at $1.1439
Pound/Dollar: Up to $1.3459
Dollar/Yen: Down to 162.34
Euro/Pound: Down to 84.99 pence
London FTSE 100: Closed up 0.27% at 10,600.37
New York Dow Jones: Closed down 0.77% at 52,146.42
Tokyo Nikkei 225: Closed for a public holiday.
