Oil Prices Soar as Investors Await US Inflation Data Amid Iran War Uncertainty

Investors in Europe and Asia are holding their breath as they await the latest US inflation data, which could have a significant impact on global markets. The war with Iran has added to uncertainty, with oil prices rising due to concerns over disrupted shipping routes.

US stock futures were slightly higher, with S&P 500 futures up 0.2% and Dow Jones Industrial Average futures almost unchanged. In early European trading, the DAX in Germany gained 0.3%, while the CAC 40 in France fell 0.2%. Britain's FTSE 100 slipped 0.1%.

Asian markets were mixed, with Japan's Nikkei 225 rising 0.8% and South Korea's Kospi jumping 3.7% due to strong demand for computer chip stocks. Samsung Electronics rose 6.7%, while SK Hynix gained 5.5%. Taiwan's Taiex advanced 0.9%, but China's Shanghai Composite and Hong Kong's Hang Seng fell.

Oxford Economics expects Brent crude prices to average around $85 a barrel for the rest of this year, before falling gradually to about $65 by late 2027. Ben May, director of global macro research at Oxford Economics, said renewed fighting between the United States and Iran could result in a prolonged reduction in shipping through the Strait of Hormuz.