Asian Markets Dive as Oil Prices Soar Above $100 a Barrel
Asian markets took a hit on Thursday, following Wall Street's retreat, as oil prices continued to soar above $100 a barrel. The Brent crude price jumped 3.4% on Wednesday and held steady at around $101 a barrel early Thursday morning.
The recent attacks between the US and Iran have severely impacted the flow of oil through the Strait of Hormuz, with US President Donald Trump stating that oil prices won't fall until after the US midterm elections.
Tokyo's Nikkei 225 fell by 0.8% to 64,597.46, while Hong Kong's Hang Seng dropped 1.4% to 24,932.95. The Shanghai Composite index gave up 0.3% to 3,939.43.
The conflict has led to a significant increase in oil prices, pushing gasoline costs up by about 32% from last year to $4.22 per gallon in the US. Diesel prices have also reached an all-time high, with the average price reaching $5.94 overnight.