Oil prices rose to their highest level in a month on Monday as renewed fighting between the United States and Iran heightened concerns over potential supply disruptions, while Asian stock markets delivered mixed performances.
Brent crude climbed above $91 a barrel, reaching its highest level since June 11. US benchmark West Texas Intermediate (WTI) also advanced after both benchmarks gained more than 4% at the end of last week.
The latest rally comes as tensions in the Middle East continue to escalate. Investors remain focused on the Strait of Hormuz, a critical shipping route that carries roughly one-fifth of the world’s seaborne oil. Any prolonged disruption there could tighten global energy supplies and push prices higher.
Market sentiment weakened further after fresh US strikes on Iranian targets over the weekend and Tehran’s retaliatory attacks on regional military assets across the Gulf.
The surge in oil prices has revived concerns that inflation could stay elevated, making it more difficult for central banks to lower interest rates.
Stephen Innes of SPI Asset Management said investors are balancing geopolitical risks with signs of easing inflation in the United States. While softer inflation and a cooling labor market may limit broader price pressures, he warned that persistently high oil prices could eventually reduce consumer spending and slow economic growth.
Asian equity markets showed mixed results.
Chinese stocks extended recent gains on expectations that Beijing will introduce more measures to support the economy following last week’s economic data. Hong Kong’s Hang Seng Index rose more than 2%, while Shanghai’s Composite Index gained 1.32%. Markets in Taipei, Manila and Singapore also finished higher.
However, trading remained cautious elsewhere. Shares in Seoul, Sydney and Wellington declined, reflecting ongoing uncertainty over the Middle East conflict.
Wall Street ended lower on Friday, with all three major US indexes falling as investors continued rotating away from technology stocks while monitoring geopolitical developments.
Meanwhile, gold slipped 0.4% despite heightened tensions, while silver rose 1%.
Key market figures
- Brent crude: Up 2.70% to $90.48 per barrel
- WTI crude: Up 2.46% to $84.52 per barrel
- Hang Seng Index: Up 2.31%
- Shanghai Composite: Up 1.32%
- Dow Jones: Down 0.77% (previous close)
- Gold: Down 0.40%
- Silver: Up 1.00%
