Tensions in the Middle East Drive Up Oil Prices and Pressure Asian Markets
Oil prices surged and Asian stocks fell on Friday after Israel carried out strikes targeting nuclear and military sites in Iran, escalating fears of a full-scale war between the two nations.
U.S. crude oil prices jumped by $3.93, or 5.8%, reaching $71.97 per barrel, while Brent crude, the global benchmark, rose by $3.82 to $73.18 per barrel.
Asian stock markets experienced declines, with Japan’s Nikkei 225 index falling by 0.9% to 37,943.25 points, and South Korea’s KOSPI dropping similarly to 2,894.62 points. Hong Kong’s Hang Seng index also decreased by 0.9% to 23,831.48 points, while the Shanghai Composite Index witnessed a 0.7% dip to 3,378.76 points.
In Australia, the S&P/ASX 200 index lost 0.2%, closing at 8,547.40 points.
Cho Tiaxin, a researcher at the Economist’s research unit, described the Israeli attack on Iran as one of the top 10 global risks. However, he anticipated that Asian markets would quickly regain their balance due to the limited direct impact of the conflict on these markets, alongside strengthened economic ties with Saudi Arabia and the UAE, which have not been directly affected.
