Oil Prices Soar Amid Middle East Tensions

Asian stocks fell on Thursday as Brent oil surged past $101 for the first time since July, amid ongoing Middle East hostilities that have fueled inflation fears.

The spike in oil prices has raised concerns about a potential interest rate hike by central banks, including the Federal Reserve, to combat rising costs. US diesel fuel is already at a record high of nearly $6 per gallon.

The Strait of Hormuz, a crucial waterway for Saudi oil exports, remains shut due to tensions between Iran and the US, with both sides exchanging strikes in recent days.

Analysts expect inflation concerns to dominate market sentiment, particularly as Washington prepares to release key consumer price data that could influence Fed decisions on interest rates.