Asia Markets Stall as Iran War Keeps Oil Prices Elevated

Asian shares were stagnant on Monday as investors remained cautious due to the ongoing Iran war and its impact on oil prices.

The conflict has resulted in a significant increase in oil prices, with Brent crude steady at $88.50 per barrel after rising 6% last week, while US crude slipped 0.3% to $82.12 a barrel, having gained 5.4% last week.

Shane Oliver, chief economist at AMP, stated that 'while there is still no resolution to the Iran/Hormuz impasse, our base case remains that oil prices will stay in a $70 to $100 range with Iran preventing it going lower and the US moving to try and calm things down whenever it gets above $100.'

The risk of higher oil prices persists as reserves run down, and the flow of oil out of the Middle East remains 10-15% below normal levels.