Asian Stocks Fall as Oil Prices Soar Above $101 Amid Middle East Tensions

Asian stocks fell on Thursday as oil prices surged to a high of US$101.94 per barrel, stoking fears of accelerating inflation and higher global interest rates.

The MSCI Asia Pacific Index dropped 0.8%, with benchmark gauges in Japan, South Korea, Taiwan, and Australia all declining.

The rise in oil prices was fueled by Iran's vow to intensify the war after hostilities flared across the Middle East.

Brent crude pared gains but remained above US$101 a barrel.

The combination of higher oil prices and rising bond yields left markets sensitive to Friday's US inflation report, which may determine whether the US Federal Reserve raises interest rates next week.