Oil Near 5-Month High as Trump Demands Iran Surrender; Asia Stocks Mixed Ahead of FOMC – Asia Market Wrap

Oil traded near a five-month high on concern escalating tensions in the Middle East will trigger more direct US involvement. Asian stocks were mixed before a Federal Reserve monetary policy decision.

West Texas Intermediate crude climbed as much as 1.1% in Asia after settling at the highest level in almost five months on Tuesday when President Donald Trump demanded Iran’s unconditional surrender and warned of a possible strike against the country’s leader. Shares slipped in Hong Kong but gained in Japan after the S&P 500 dropped 0.8% in New York.

Treasuries crept lower in Asia but still held the bulk of their gains from Tuesday that were driven by geopolitical risks and disappointing US data on retail sales, housing and industrial output. Bloomberg’s index of the dollar was little changed after rising the most in a month in the US session.

Oil extended its advance over the past week to about 10% on Tuesday after Trump was said to meet with his national security team in Washington to discuss the escalating Middle East conflict, fueling speculation the US is on the verge of joining Israel’s attack on Iran. US weapons are seen as crucial to achieving a more complete destruction of the Islamic Republic’s atomic program than anything Israel can do alone.