Middle East Tensions Drive Oil Prices to Near $100
Oil prices surged to near $100 per barrel on Wednesday as Middle East tensions escalated, causing Asian stocks to remain subdued. Brent crude futures rose by $1.10 to $99.02 a barrel, while US West Texas Intermediate crude increased by $0.93 to $93.95 a barrel.
The yen strengthened towards its nearly seven-month high against the dollar as traders exited short positions in the Japanese currency amid expectations of faster Bank of Japan interest rate hikes and potential capital repatriation.
European markets are also bracing for central bank tightening, with the European Central Bank expected to raise euro zone rates by a quarter point on Thursday. The ECB's decision comes as inflationary pressures from the Iran war continue to weigh on global equities.
According to Chris Weston, head of research at Pepperstone, Brent crude is 'one of the clearest real-time signals for sentiment' in the overall market and $100 'now feels like a highly achievable level.'