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- World stock markets plummet as oil prices surge amid Iran war (themirror.com)
Asian markets opened sharply lower on Monday amid escalating worries over soaring oil prices and the potential for a further escalation in the U.S.-Iran conflict. The decline followed Wall Street’s steep losses on Friday, marking the fifth consecutive week of declines-the longest losing streak in nearly four years.
Japan’s Nikkei 225 plunged 4.5% to 50,979.54 in early trading, while Australia’s S&P/ASX 200 fell 1.2% to 8,417.00. South Korea’s Kospi dropped 3.2% to 5,264.32. In China and Hong Kong, the Shanghai Composite slipped 0.7% to 3,884.57, and the Hang Seng declined 1.7% to 24,519.63.
Heightened tensions in the Middle East have raised concerns across Asia, particularly in Japan, about restricted access to the Strait of Hormuz-a critical passage for petroleum shipments on which the region heavily relies.
In energy markets, U.S. crude prices surged $2.28 to $101.92 per barrel, while Brent crude jumped $2.88 to $115.45 per barrel, sharply higher than the pre-conflict level of around $70 per barrel.
Market analysts are bracing for an extended conflict, which could drive inflation higher worldwide and weigh on Asia’s economic growth. Xavier Lee, senior equity analyst at Morningstar Research, noted, “Although we do not expect the conflict to be protracted, we anticipate heightened volatility in the near term.”
On Wall Street, the S&P 500 dropped 1.7% last Friday, recording its worst week since tensions flared with Iran. The Dow Jones Industrial Average shed 793 points, falling more than 10% from its recent peak, while the Nasdaq Composite tumbled 2.1%, with tech giants such as Amazon and Nvidia facing significant selling pressure. The S&P 500 now stands 8.7% below its January record high.
In bond markets, the 10-year Treasury yield climbed to 4.48% before settling at 4.43%, up from 3.97% prior to the conflict. Meanwhile, the U.S. dollar eased slightly against the Japanese yen and euro, trading at 159.97 yen and $1.1505, respectively.
As geopolitical uncertainty continues to ripple through global markets, investors remain cautious, closely watching developments in the Middle East and their potential economic repercussions.
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- World stock markets plummet as oil prices surge amid Iran war (themirror.com)