Brent prices hold above $100 as Iran conflict fuels market volatility – Markets

Brent prices hold above $100 as Iran conflict fuels market volatility - Markets


Meanwhile, the United Arab Emirates temporarily closed its airspace amid concerns over widening regional disruptions. Oil prices turned volatile as US President Donald Trump urged allied nations to assist in protecting oil tankers transiting the Strait of Hormuz.

Further, US Treasury Secretary Scott Bessent stated that Iranian oil tankers are being allowed to pass through the Strait of Hormuz. Asian-Pacific markets reacted positively, with stock indices rising on Tuesday as investors closely monitored ongoing developments related to the Iran-related conflict.

Notably, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating Middle East tensions. The prices later dropped significantly after the announcement of coordinated oil reserve release by major G7 economies. The oil price, although at a multi-year high, were still lower than its all time high of USD 147 per barrel seen in July, 2008. The recent hike was also lower than USD 130 per barrel price that was hit in 2022 during the Russia-Ukraine crisis.

On Monday, Trump said Washington had asked China to delay his planned meeting with Chinese President Xi Jinping. In the international market US stock futures were largely flat after major indexes posted gains overnight, supported by easing oil prices that helped calm broader market sentiment.

US stocks rebounded sharply on Monday, as declining oil prices reduced fears of energy-driven economic shocks. The Dow Jones Industrial Average climbed 0.83 per cent to 46,946.41, while the S&P 500 rose 1.01 per cent to 6,699.38 and the Nasdaq Composite advanced 1.22 per cent to 22,374.18. Technology and banking stocks led the rally, as investors positioned themselves ahead of the upcoming Federal Reserve policy decision.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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