Asia Markets Slide as Oil Prices Surge Amid Supply Concerns
Stock markets in Asia declined on September 14 as oil prices surged anew due to supply concerns. The price of Brent crude oil climbed 3% after attacks on Saudi Arabia and ships in the Gulf raised fears that global energy supplies could be disrupted further.
A meeting between Iran and Gulf Arab states, scheduled for September 14 to discuss a deal on opening the Strait of Hormuz, was postponed. With shipping through the strait and Bab el-Mandeb under threat, analysts warn that oil prices may remain elevated for an extended period, stoking inflation globally.
The US Federal Reserve is expected to raise interest rates by 25 basis points on September 16, according to market expectations, which also imply a 76% chance of the Bank of Japan hiking its cash rate by a quarter point to 1.25% when it meets on September 18.