Oil Prices Soar as US and Iran Clash in Gulf

Asian stocks rallied on Monday as investors took the robust US jobs report as a positive sign for global growth, despite it narrowing the odds of an interest rate hike. The US and Iran's recent attacks in the Gulf drove up oil prices, with Brent reaching $96.45 per barrel and US crude at $91.85 per barrel.

The European Central Bank is expected to lift rates to 2.75% on Thursday, with futures implying a 75% chance of another hike to 3% by December. However, the risk of hawkish guidance from the ECB kept European stocks on edge, with EUROSTOXX 50 and DAX futures easing 0.1%.

JPMorgan's global head of economics, Bruce Kasman, forecasts core CPI to rise 0.21%, which would be low enough to keep the Fed on hold. Markets are pricing a 75% chance of the Bank of Japan raising rates by quarter point at its meeting on September 18.

The dollar index got only a mild lift from the jobs report, with worries about US debt and policy uncertainties eroding its purchasing power. The euro held steady at $1.1614, within sight of the August top at $1.1711.