Brent Crude Surges to Nearly $100 per Barrel Amid Escalating Middle East Tensions
Global markets are feeling the effects of escalating tensions in the Middle East. Brent crude oil prices surged to nearly $100 per barrel on Wednesday, marking a fourth straight day of gains.
The increase has stoked inflation worries ahead of the release of US consumer price data this Friday. Traders are pricing higher odds for central bank tightening in response to rising costs.
Asian stocks were subdued, with Sydney's market slipping 0.3%, while Hong Kong's Hang Seng dropped 0.6%. However, some regional benchmarks saw a rebound in chip and AI stocks, with Japan's Nikkei up 0.6% after Tuesday's decline.
The yen strengthened towards its nearly seven-month high against the dollar as traders exited short positions in Japanese currency amid expectations for faster Bank of Japan interest rate hikes.