Oil prices surged significantly due to escalating concerns about a prolonged conflict in Iran, leading to a ripple effect in global markets. While most Asian markets that remained open displayed modest gains during cautious trading, major markets in Europe and the U.S. were closed in observance of the Good Friday holiday, leading to a somewhat restrained trading environment.
U.S. futures indicate a downward trend, with the S&P 500 futures declining nearly 0.3% to 6,604.50, while Dow futures similarly dropped 0.3% to 46,615.00. The surge in oil prices was marked by a considerable 11.4% increase in benchmark U.S. crude, which reached $111.54 per barrel, alongside a 7.8% rise in Brent crude, pushing its price to $109.03 per barrel.
Analysts from BMI, a unit of Fitch Solutions, noted that a prolonged conflict in the region poses threats to physical infrastructure, exacerbates disruptions through the crucial Strait of Hormuz, and suggests an extended recovery period post-conflict, potentially affecting prices throughout the year.
In contrast to the U.S., where reliance on Persian Gulf oil imports has diminished, Asian nations such as Japan are significantly affected. For Japan, the Strait of Hormuz is vital for the majority of its oil imports, prompting speculation that a diplomatic agreement with Iran could facilitate continued fuel transportation.
Among the Asian markets, Japan’s Nikkei 225 index saw an increase of 1.3%, closing at 53,123.49 points. South Korea’s Kospi index experienced a noteworthy gain of 2.7%, finishing at 5,377.30. However, the Shanghai Composite index fell by 1.0%, settling at 3,880.10. Many markets across the region—including Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia, and India—were closed for the holiday.
In political developments, U.S. President Donald Trump expressed a commitment to continuing actions against Iran, without providing a clear timeline for resolving the ongoing conflict in the Middle East. Meanwhile, in currency exchanges, the U.S. dollar appreciated slightly against the Japanese yen, increasing to 159.63 from 159.53 yen, while the euro rose to $1.1542 from $1.1537.
