Oil Price Surge and Central Bank Fears Weigh Down Asian Markets
Asian stock markets took a hit on Monday, September 14, as oil prices surged and investors awaited central bank decisions. The Nikkei index futures fell by 2% to 63,260 points, while S&P 500 and Nasdaq futures declined by 0.5% and 1%, respectively.
The sharp increase in oil prices was driven by concerns over supply disruptions due to conflicts in the Middle East. Brent crude futures rose by 3.1% to $107.84 per barrel, while U.S. crude gained 2.8% to $102.85 per barrel.
Analysts warn that shipping risks through key waterways such as the Strait of Hormuz and Bab el-Mandeb could keep oil prices high for an extended period, fueling global inflation. The market is also pricing in a significant probability of interest rate hikes by major central banks, including the Federal Reserve and Bank of Japan.