Iran’s Oil Hits a Six-Month High, Stocks Drop – Asia Market Wrap

Oil surged to a six-month high, while stocks fell as rising tensions in Iran weighed on risk appetite.

Benchmark Brent rose 0.5% to $72 per barrel after Trump said Iran has 15 days at most to reach a nuclear deal and the US deployed a slew of Marines in the Middle East. The commodity’s weekly increase now exceeds 6%.

Asian stocks fell 0.4%, after similar drops on Wall Street. However, equity-index futures for the US and Europe moved up 0.3%, indicating that mood may be stabilising. South Korean stocks surged 2.1%, extending their lead as the world’s best-performing market this year.

Aside from Iran, traders are keeping an eye on Friday’s US economic and inflation numbers, especially after minutes from the Fed’s most recent meeting revealed continued concerns about pricing pressures. In addition, the US Supreme Court has scheduled Friday as its next opinion day, amid a global wait for a decision on Trump’s tariffs.

In other news, the Dollar was on track for its best week in four months as traders reduced their expectations for Fed interest rate reduction, while geopolitical worries boosted the currency’s haven appeal.