Oil Price Surge Triggers Global Stock Selloff Amid Middle East Tensions
Asian stocks tumbled on Thursday as oil prices continued their upward surge, fueled by escalating tensions in the Middle East. Brent crude soared past $100 for the first time since July and has jumped over 20% in under a week.
The escalation of hostilities between the US and Iran around the Strait of Hormuz has sparked fears of increased inflation, prompting speculation that central banks will raise interest rates to combat rising prices.
US diesel has reached a record high of almost $6 per gallon, while European Central Bank is expected to lift borrowing costs on Thursday. The latest developments in the conflict saw Iran hit over a dozen ships attempting to pass through the strait and announcing an expansion of its no-go zone outside the waterway.
Nintendo shares plummeted 5.5% following a disappointing online showcase of upcoming games, with analyst Serkan Toto calling it 'very underwhelming'.