Gulf Truce Crumbles: Oil Jumps Past $96, Asia Slides on Renewed War Risk
Why It Matters
Higher oil prices revive inflation concerns and keep investors cautious, pressuring Asian markets and commodity‑dependent economies.
Key Takeaways
- •Oil climbs above $96 as Gulf ceasefire doubts rise.
- •Brent up $2, WTI gains $250, still under $100.
- •Israel‑Lebanon clash fuels Iran’s skepticism over peace‑talk negotiations.
- •Asian equities slip; Japan flat, Korea down, China modestly lower.
- •Gold steadies above $4,700 amid heightened geopolitical risk.
Summary
The Business Times podcast reported that oil prices jumped above $96 a barrel on Thursday as doubts resurfaced about the two‑week cease‑fire in the Gulf, raising concerns that shipments through the Strait of Hormuz could remain constrained.
Brent crude rose nearly $2 to just over $96, while U.S. WTI added $250 to settle above $97, still below the $100 threshold that had been breached the day before. Analysts said traders are reluctant to unwind the geopolitical risk premium, and the lack of clarity on U.S.–Iran negotiations adds further uncertainty.
The fragility of the truce was underscored by Israel’s renewed attack on Lebanon, prompting Iran to label any permanent peace talks as unreasonable. Asian equity indexes fell, with Japan’s Nikkei hovering flat, South Korea down 0.4%, and China’s blue‑chips slipping 0.6%; the MSCI Asia‑Pacific index fell 0.7%. The yen steadied above 158 per dollar and gold edged higher above $4,700 an ounce.
These developments suggest that inflationary pressure from higher energy costs will linger, and investors will likely keep a risk‑off stance until a durable cease‑fire emerges, affecting commodity markets and Asian growth‑oriented equities.
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