Oil Nears $100 Per Barrel as West Asia Tensions Escalate
Oil prices surged on Wednesday, nearing $100 per barrel for the first time since late June. The Brent crude futures rose by $1.57 to $99.49 a barrel, while US West Texas Intermediate crude increased by $1.60 to $94.63 a barrel.
The escalation of tensions in West Asia due to Iranian-backed Houthis launching strikes on several Saudi cities and the US hitting multiple Iranian oil tankers contributed to the rise in oil prices.
Asian stocks were subdued, with Hong Kong's Hang Seng dropping 0.6% and mainland Chinese blue chips edging up 0.2%. However, regional benchmarks such as Japan's Nikkei and South Korea's KOSPI saw gains, driven by a rebound in chip and AI stocks.
Chris Weston, head of research at Pepperstone, noted that Brent crude is currently 'one of the clearest real-time signals for sentiment' for the overall market, with $100 feeling like a highly achievable level.