Brent crude oil prices surged over five per cent in early trade on Monday amid renewed fears of escalation between Iran and the United States after the US Navy seized an Iran-linked ship on Sunday. The prices had come down to $89 on Friday due to de-escalation between the two sides and the opening of the Strait of Hormuz.
However, on Monday the prices surged to the $95–$96 per barrel range. The sharp increase was triggered by renewed geopolitical tensions between the United States and Iran, which raised fears of supply disruptions in the critical Strait of Hormuz.
Other reports confirm that West Texas Intermediate (WTI) climbed 5.51 per cent to reach $88.47.
The volatility weighed on US equity expectations, with Dow Jones Futures dropping 367.44 points, or 0.74 per cent, in early trade.
Gold prices softened slightly, trading at $4,807.93 per ounce.
Meanwhile, the impact of the tensions between Iran and the United States was quickly felt across Asian markets as multiple indices rose on Monday.
Japan’s Nikkei 225 rose 614.10 points, or 1.05 per cent, to reach 59,090.00. South Korea’s KOSPI added 1.32 per cent to 6,273.92, and the Taiwan Weighted index gained 413.85 points to trade at 37,218.19.
In Hong Kong, the Hang Seng edged up 0.61 per cent to 26,321.00, while China’s Shanghai Composite recorded a 0.52 per cent increase.
While other markets like Singapore’s Straits Times index saw a marginal decline of 0.06 per cent, as per the latest market data.
Also read: Indian stock market witnesses mix-opening in early trade
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