Oil prices spiked Monday as fresh military clashes between US and Iran stoked fears over shipping routes in Strait of Hormuz. Brent crude rose about 0.9%, hitting $73.21 barrel. Markets uneasy about ongoing conflict.
Weekend brought tit-for-tat strikes between nations. Doubts now linger over return to normal in crucial waterway, which handles around one-fifth of world's oil and LNG trade. Fabien Yip,market analyst from IG in Sydney,said price jump shows market correcting after too much ceasefire optimism.
“Brent’s partial rebound this morning reflects a market that had perhaps run too quickly on ceasefire optimism,” Yip stated.
Despite a memorandum that lacks enforcement details, ongoing attacks — including recent strike on commercial vessel — have forced a rethink. Weekend's back-and-forth only deepened worries.
Asian stock markets showed mixed results Monday. Japan's Nikkei 225 dropped 0.7%,South Korea's Kospi fell 1.9%. Meanwhile,Hong Kong's Hang Seng Index and Taiwan's Taiex gained 2.2% and 1.4%. Tech stocks in Japan and Korea hit hard,reflecting fears over AI investments.
SoftBank Group,big tech player,saw 5% drop. Advantest Corporation,semiconductor tester,fell 3.7%. South Korea's Samsung Electronics and SK Hynix also down,losing about 5% and 4%. Yip pointed to quarter-end profit-taking as investors locked in gains after strong year,with Kospi up ~95%,Nikkei up 37%.
US Central Command confirmed strikes on Iranian targets over weekend,citing Iranian attacks on two commercial ships in Strait of Hormuz. In response,Iran fired missiles, drones at US bases in Bahrain and Kuwait. Reports late Sunday suggested both sides agreed to halt fighting,resume talks to end conflict .
Anonymous US officials said discussions will happen in Doha, Qatar, Tuesday. But Iran hasn't publicly confirmed ceasefire or talks. Tensions linger since US President Trump and Iranian President Pezeshkian signed memorandum June 17 — ongoing clashes, differing views on its terms complicate matters…
