Oil prices are surging on worries of a prolonged Iran war while most Asian financial markets are rising moderately during cautious trading
Oil prices surge while Asian share prices rise moderatelyBy YURI KAGEYAMAAP Business WriterThe Associated PressTOKYO
TOKYO (AP) — Oil prices continued to surge on worries of a prolonged Iran war but most Asian markets that were open rose moderately in cautious trading Friday.
In Europe, trading was closed in France, Germany and Britain for the Good Friday holiday.
U.S. markets trading also was closed, but S&P 500 futures are trading and slipped nearly 0.3% to 6,604.50. Dow futures were down 0.3% at 46,615.00.
Benchmark U.S. crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
“A more extended conflict raises the threat to physical infrastructure, extends disruptions through the Strait of Hormuz, and will entail a longer post-war recovery period, with price impacts spilling over later into the year,” according to a report from BMI, a unit of Fitch Solutions.
The U.S. relies on the Persian Gulf for only a fraction of the oil it imports, but oil is a commodity and prices are set in a global market.
The situation is very different in Asia. Japan, for example, needs access to the Strait of Hormuz for much of the nation’s oil imports or would need alternative routes. But some analysts say Japan and other nations are counting on an agreement with Iran to allow fuel to be transported through the strait.
Japan’s benchmark Nikkei 225 gained 1.3% to finish at 53,123.49. South Korea’s Kospi jumped 2.7% to 5,377.30. The Shanghai Composite sank 1.0% to 3,880.10. Trading was closed in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia and India for the Good Friday holiday.
U.S. President Donald Trump late Wednesday vowed the U.S. will continue to attack Iran and failed to offer a clear timetable for ending the conflict in the Middle East.
In currency trading, the U.S. dollar edged up to 159.63 Japanese yen from 159.53 yen. The euro cost $1.1542, up from $1.1537.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
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