Middle East Tensions Send Oil Prices Soaring Amid Global Market Volatility
Asian shares and US futures declined on Tuesday as escalating conflict in the Middle East pushed oil prices higher. The Houthi attacks on oil facilities and utilities in Saudi Arabia's southern region have escalated a renewed conflict between the US ally and Iranian-backed rebels in Yemen.
The Nikkei 225 index fell 1.7% to 65,269.33 as major exporters were sold due to a surge in the value of the Japanese yen. Toyota Motor Corp. shares shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%. The US dollar slipped to 153.73 Japanese yen from 154.34 yen.
The South Korea's Kospi index lost 0.6% to 6,954.52, while Hong Kong's Hang Seng declined 0.3% to 25,345.04. China said its exports jumped 25% year-on-year in August, driven by strong demand for autos and high-tech items.
Brent crude oil prices added 1.4% to $98.40 a barrel as tensions simmered in the six-month US war with Iran. The benchmark U.S. crude surged 2.6% to $93.88 a barrel.