Oil Prices Soar Above $108 as Asian Shares Decline
Asian shares declined on Friday, mirroring Wall Street losses, while oil prices continued to rise. Brent crude surpassed $108 per barrel for the first time since May, with tensions between the US and Iran contributing to its growth. The international standard benchmark was up 0.9% at $108.59 per barrel.
The Strait of Hormuz, a critical waterway for global oil transport, saw oil flowing through it at levels well below pre-war levels, according to ING commodities strategists Warren Patterson and Ewa Manthey. This underscores the fragility of the situation.
US futures edged higher on Friday, but the overall market trend remains uncertain. Investors are closely monitoring the US's consumer price index data for August, which is set to be released ahead of the Federal Reserve's meeting next week. The bond market has been volatile, with U.S. Treasury yields well above pre-war levels, fueled by higher energy prices and inflationary pressures.