Oil steady near highs as Asian stocks slide on prolonged conflict fears
Oil prices held firm while Asian equities moved lower, as uncertainty around the Iran conflict continued to weigh on sentiment despite signals the US may seek an end to the war without a formal agreement on the Strait of Hormuz.
Brent crude remained elevated at around $113 a barrel, with US benchmark crude near $103, capping a surge of more than 40% since the conflict began.
Asian markets reflected the cautious mood:
- The Nikkei 225 fell 1.2%, erasing its gains for the year
- South Korea’s Kospi dropped 3.4%
- The Hang Seng Index slipped 0.5%
- The Shanghai Composite declined 0.4%
- Taiwan’s Taiex lost 2.2%
The conflict, now in its fifth week, continues to disrupt energy markets. A reported drone strike on a Kuwaiti oil tanker and ongoing attacks in the region have reinforced concerns over supply security.
Roughly 20% of global oil flows through the Strait of Hormuz, making it a critical chokepoint. Recent moves by Iran to assert control over transit—reportedly including a form of “toll” system—have intensified market anxiety.
In the US, markets were mixed. The S&P 500 fell 0.4%, the Nasdaq Composite dropped 0.7%, while the Dow Jones Industrial Average edged 0.1% higher.
Despite talk of a potential end to the conflict, the absence of a clear resolution—particularly around oil transit—means markets remain highly sensitive to geopolitical developments and energy supply risks.
