Oil Prices Soar as US Strikes Iranian Rocket Launchers, Global Markets React
Global markets reacted to the US strike on Iranian rocket launchers in the Strait of Hormuz, with oil prices surging and Asian shares falling. Brent crude rose 2.9% to $90.61 per barrel, while US benchmark crude jumped 2.7% to $85.66 per barrel.
The Trump administration's shift back towards military action has raised concerns about the region's stability and potential impact on global markets. Stephen Innes of SPI Asset Management noted that 'the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude.'
Meanwhile, US futures declined, with the S&P 500 and Dow Jones Industrial Average slipping 0.3%. The Nikkei 225 in Tokyo lost 0.4% to 66,164.66, while the Kospi in South Korea declined 0.5% to 6,757.67.
The Fed's potential interest rate hike also weighed on markets, with futures falling on expectations of a rate increase. Innes noted that 'the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude.'