Asian Stocks Rise as Gulf Tensions Fuel Oil Price Spike

Asian stocks rose on Monday after a soft US jobs report reduced the likelihood of an interest rate hike, but oil prices edged higher due to ongoing tensions in the Gulf region. The Strait of Hormuz remained closed, and Iran said that a deal with Oman defining new shipping lanes was almost complete, but only if the US met certain conditions.

Oil prices increased, with Brent crude reaching $84.32 per barrel, a 0.9% gain, while US crude rose to $78.74 per barrel, a 0.7% increase. The recent spike in fuel costs may affect the upcoming US consumer price report on Wednesday, which is expected to show a 0.1% rise in headline and 0.2% core inflation.

Michael Feroli, chief US economist at JPMorgan, stated that his forecast for core CPI of 0.22% might not be enough to prompt a rate hike from the Federal Reserve next month, but repeated prints closer to 0.3% could do so.