Asia Markets Choppy as Threat of Trump Hormuz Levy Spooks Traders
Brent crude rose 2.6% as investors weighed renewed Iran shipping tensions and a 43.3% chance of a Federal Reserve rate hike, CME Group said.
- On Tuesday, President Donald Trump announced the United States would reinstate its blockade of Iranian shipping in the Gulf and collect a 20% fee on cargo traversing the Strait, sending oil to four-week highs.
- Military tensions escalated when two United Arab Emirates tankers were hit by two Iranian cruise missiles on Monday, killing one Indian crew member and wounding eight others; Central Command launched a third consecutive night of strikes.
- Brent crude futures climbed US$1.68, or 2%, to US$84.98 per barrel while West Texas Intermediate crude rose US$1.65, or 2.1%, to US$79.79; KCM Trade chief market analyst Tim Waterer said the escalation 'clearly injected fresh risk into the market'.
- Wall Street stocks tumbled overnight with the Nasdaq Composite falling 1.6%, while Federal Reserve Governor Christopher Waller signaled potential rate increases, raising hike probability to 43.3% for the July 28-29 meeting from 34.2% on Friday.
- Eastspring Investments' chief investment officer Vis Nayar warned persistently higher oil prices would increase Federal Reserve hike risk later this year, while Pepperstone analysts cautioned that tighter monetary policy amid energy shocks rarely supports risk assets.
13 Articles
13 Articles
It was enough to do two things to understand how untenable it was: it was worth 30 million dollars more on the road, fifteen times more than Iran has ever managed to collect with its own toll. The 20% tax on the Strait of the Persian Gulf lasts less than 24 hours. Markets go down, but the bill of instability on oil and gas is already being presented.
Asian Stocks Waver as Oil Jumps After Trump Threatens Hormuz Transit Fee
Asian markets traded mixed on Tuesday as oil prices climbed to a one-month high after U.S. President Donald Trump announced the reinstatement of a blockade on Iranian shipping and proposed a 20% fee on cargo passing through the Strait of Hormuz. Investors also remained cautious ahead of key U.S. inflation data and growing expectations that […] The post Asian Stocks Waver as Oil Jumps After Trump Threatens Hormuz Transit Fee appeared first on Mod…
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