Asian Stocks Drift Amid Ongoing Iran Conflict and Elevated Oil Prices

Asian stock markets made little progress on Monday as investors kept a close eye on oil prices, which remained elevated due to the ongoing conflict in Iran. Brent crude was steady at $88.50 a barrel after rising 6% last week, while U.S. crude slipped 0.3% to $82.12 a barrel, having gained 5.4% last week.

Shane Oliver, chief economist at AMP, noted that the base case for oil prices remains in the $70-$100 range, with Iran preventing them from going lower and the U.S. trying to calm things down when they get above $100.

The conflict has led to a decrease of 10-15% in oil flow out of the Middle East, which may lead to higher oil prices as reserves run down.

Asian shares were flat, with Japan's Nikkei edging 0.4% higher and Australia's resources-heavy shares slipping 0.3%. The South Korean stock market was closed on Monday for a public holiday.