Oil heads for $100, Asia stocks subdued as Middle East tensions escalate

According to Business Recorder, Brent crude moved towards $100 a barrel on Wednesday as escalating attacks in the Middle East kept Asian share markets subdued. Brent futures gained $1.57 to $99.49, their loftiest point since late June, while US West Texas Intermediate stood at $94.63. Oil has now advanced for four consecutive sessions, adding to inflation worries ahead of key US consumer price data due on Friday.

Currency markets moved sharply too. The yen firmed toward its near seven-month peak against the dollar set a day earlier, as traders unwound short positions on expectations of faster Bank of Japan rate increases. The euro edged higher ahead of the European Central Bank decision on Thursday, which markets widely expect to bring a rate hike driven by inflation linked to the Iran war.

Regional equities were mixed, with Sydney slipping about 0.3 per cent and Hong Kong's Hang Seng falling 0.6 per cent. Japan's Nikkei gained 0.6 per cent and South Korea's KOSPI jumped 1.6 per cent as semiconductor and AI-related shares recovered. Wall Street's S&P 500 cash index had sunk 0.6 per cent on Tuesday, and Pepperstone's Chris Weston described price action as indecisive.