Oil Surges as Tehran’s Response Looms; European Futures Slide Amid Rising Iran Tensions – Asia Market Wrap

European stock futures declined while oil advanced, as traders awaited Tehran’s response after Washington struck Iran’s nuclear sites over the weekend.

The DXY climbed 0.3%, while global crude benchmark Brent rose almost 2% after surging as much as 5.7%. Contracts for the S&P 500 declined 0.3% and a gauge of Asian equities fell to the lowest since early June. Treasury yields ticked higher.

Oil remained the primary focus as any disruption to traffic through the Strait of Hormuz, a major artery for global crude and natural gas, has raised the specter of a spike in energy prices. While Iran’s Foreign Minister Abbas Araghchi said the country reserves all options to respond, there haven’t yet been any signs of actual disruption to physical oil flows.