Oil Prices Soar Above $108 as Asian Shares Decline
Asian shares declined on Friday, mirroring Wall Street losses, while oil prices surged to their highest point since May. Benchmark Brent crude traded at $108.59 per barrel, a 0.9% increase from the previous day. U.S. futures edged higher.
In Japan, the Nikkei 225 dropped 2.8% to 63,442.30. SoftBank Group's shares fell 4.1%, while Samsung Electronics slid 3.9%. South Korea's Kospi lost 2.3% to 6,872.39.
China's Shanghai Composite index was down 1.8% to 3,862.73. However, AI chipmaker Enflame saw its shares surge around 180% on its trading debut in the city.
The tensions between the U.S. and Iran are likely contributing to the increase in oil prices. ING commodities strategists Warren Patterson and Ewa Manthey wrote that oil flowing through the Strait of Hormuz remains 'well below pre-war levels,' underscoring how fragile the situation has become.