Oil Price Surge and Rate Hike Bets Spark Asian Stock Market Plunge

Global energy markets are in turmoil after a fresh surge in oil prices, causing Asian stock markets to plummet on September 14. The Brent crude price rose by around 3% following new attacks on Saudi Arabia and vessels in the Persian Gulf. An assault on a Saudi oil pipeline and the advance of Yemen's Houthi rebels heightened concerns about further disruptions to global energy supplies.

The meeting between Iran and Arab states of the Persian Gulf, scheduled for Monday in Oman, was postponed amid threats to shipping in key straits. Analysts suggest that high oil prices could persist for an extended period and fuel global inflation.

Brent futures rose 3.1% to $107.84 per barrel, while U.S. crude rose 2.8% to $102.85 per barrel. The Federal Reserve's decision on interest rates is also influencing markets, with a meeting scheduled for Wednesday raising expectations of a 25-basis-point rate hike.

Michael Feroli, chief U.S. economist at JPMorgan, believes that failing to back up words with action could undermine confidence in the institution. He expects the Federal Reserve to raise rates twice this year, in September and December.