Oil prices rose nearly 3% after US strikes on Iran, Asian markets brace for decline
Kyiv • UNN
WTI oil prices rose 2.9% after new US strikes on Iran. Asian stock markets brace for decline due to escalation.
World oil prices surged sharply after new US strikes on Iran and Washington's revocation of permission to sell Iranian oil. At the same time, Asian stock markets are bracing for a second consecutive day of decline. Bloomberg reports this, writes UNN.
Details
West Texas Intermediate (WTI) crude oil prices jumped 2.9% and exceeded $72 per barrel. The rise began after reports of new US military strikes on Iran in response to attacks on commercial vessels in the Strait of Hormuz.
Amid the escalation, futures on stock indices in Japan, South Korea, and Australia pointed to a decline. In the US, the Nasdaq 100 index lost 1.8% the day before, and the index of microchip manufacturer stocks fell by more than 4%.
Investors fear new escalation
According to Bloomberg, the latest events threaten peace agreements between the US and Iran and heighten investor nervousness, who are already concerned about high valuations of technology company stocks.
At investment firm UBS, it was noted that investors should diversify their holdings more, despite maintaining positive prospects for the development of artificial intelligence.
Additional pressure on markets is exerted by the US Treasury Department's decision to revoke sanctions exemptions that allowed Iran to export oil. According to investors, this could lead to further increases in energy prices and affect the future policy of the US Federal Reserve System.