Oil Prices Soar, Asian Stocks Drop as Trump Escalates Iran Attacks

By Staff, Agencies

Oil prices surged over $5 after US President Donald Trump announced that the United States would continue its attacks on Iran, sparking concerns among investors about prolonged disruptions to supply without a clear end to the war.

Brent crude futures rose 6.3% to $107.49 per barrel, and US West Texas Intermediate crude climbed 5.3% to $105.40, after an earlier dip of over $1, following Trump's televised speech.

Iran’s closure of the Strait of Hormuz in retaliation for the US-“Israeli” attacks has disrupted about one-fifth of global oil and liquefied natural gas [LNG] supplies, causing the world’s biggest energy crisis in decades.

“We’re getting very close and will finish the job fast,” Trump said, claiming US goals in the conflict would be met in two to three weeks, similar to past remarks.

Asian stocks fell after Trump’s speech, with Southeast Asian countries, heavily reliant on oil imports, particularly affected by the surge in oil prices from the Middle East war.

Asian emerging market stocks dropped, with the MSCI index falling 2.3%, and regional currencies weakening 0.2%. South Korea’s KOSPI slid 4.2% after a nearly 2% gain.

South Korean President Lee Jae ⁠Myung urged parliament to pass a $17.3bn budget to boost the economy amid the "worst energy security threat" from the Middle East crisis.

Singapore's SGX dropped 0.8% after opening at a two-week high, while Malaysia's index fell 1%, and markets in Indonesia and Taiwan lost 1% and 1.4%, respectively.

Stocks in China and Hong Kong fell, with the Shanghai Composite down 0.53% and the CSI300 losing 0.74%. In Hong Kong, the Hang Seng dropped 1.1%, and the HSTECH index fell 2.2%.

Prior to Trump’s speech, Iran reached out directly to the US, stating it had no enmity and was acting in self-defense," said Al Jazeera's Patrick Fok, noting this gave Washington an off-ramp and boosted Wall Street stocks. However, uncertainty has returned to markets.

Fok added, "If there's any resolution, markets are likely to bounce back quickly, as seen in recent Asian market gains."