Crude oil prices rose sharply on Thursday after fresh military exchanges between Iran and the United States, while Asian stock markets witnessed a slump. Once again, missile and drone exchanges between the two sides have halted shipping and disrupted traffic in the Strait of Hormuz.
This comes a day after both sides hinted at positive outcomes on a possible ceasefire deal. However, the fresh clashes have caused renewed uncertainty in the global supply chain.
Brent crude, the main international benchmark, rose by 1.8 per cent in Thursday morning trade to $95.95 a barrel, while the main US contract, WTI, increased by 1.7 per cent to $90.17. Meanwhile, uncertainty in the Middle East has triggered a slump in Asian markets, with Hong Kong’s Hang Seng index dipping more than 1.5 per cent.
South Korea’s Kospi was down one per cent, while the Shanghai Composite was trading 0.3 per cent lower in early morning trade.
Taipei’s main index gained more than one per cent, while Tokyo remained flat at the midday break. The decline came after investors rallied behind AI and semiconductor chipmakers in Taiwan and Samsung Electronics on Wednesday.
In Asia, South Korean chipmaker SK Hynix hit a $1 trillion market capitalisation, placing it alongside regional tech heavyweights Samsung Electronics and TSMC, as well as US chipmaker Micron.
“The Strait may eventually reopen fully, but until there is something more concrete than draft frameworks and political theatre, every barrel remains hostage to headline volatility, even if sub-$100,” said one senior oil market analyst.
Market Snapshot:
- Brent North Sea Crude: Up 1.8 per cent at $95.95 per barrel
- West Texas Intermediate (WTI): Up 1.7 per cent at $90.17 per barrel
- Tokyo – Nikkei 225: Flat at 64,980.63 points
- Hong Kong – Hang Seng Index: Down 1.5 per cent at 24,943.99
- Shanghai – Composite: Down 0.3 per cent at 4,082.86
Global Currency Exchanges:
- Euro/Dollar: Down at $1.1614 from $1.1629 on Wednesday
- Pound/Dollar: Down at $1.3405 from $1.3434
- Dollar/Yen: Up at 159.54 from 159.53 yen
- Euro/Pound: Up at 86.64 from 86.59 pence.
Also read: MFI portfolio dips 9 pc as private banks wary
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