Crude oil prices have climbed and Asian shares are trading mixed as markets await more clarity on whether or not the U.S. will join Israel’s war against Iran
Asian shares are mixed and oil gains as world waits to see if US will join Israel’s war against IranBy TERESA CEROJANOAssociated PressThe Associated PressMANILA, Philippines
MANILA, Philippines (AP) — Crude oil prices rose and Asian shares were trading mixed on Friday as investors awaited more clarity on whether or not the U.S. will join Israel’s war against Iran.
U.S. futures edged lower after Wall Street was closed on Thursday for the Juneteenth holiday.
U.S. benchmark crude oil added 15 cents to $73.65 per barrel, while Brent crude, the international standard was up 19 cents at $76.89 per barrel.
Oil prices have been gyrating as fears rise and ebb that the conflict between Israel and Iran could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.
Investors remained wary after the White House said President Donald Trump could decide on whether to launch an attack on Israel within the next two weeks, but that he “still believes diplomacy is an option,” said Anderson Alves, a trader at ActivTrades.
Trump’s tariffs agenda remains another major factor weighing on markets.
Tokyo’s Nikkei 225 index edged 0.1% higher to 38,538.14 after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba’s government and the central bank.
“Core Japanese inflation rose more than expected in May. Even so, the Bank of Japan is likely to prioritize the negative impact of U.S. tariffs, Min Joo Kang of ING Economics said in a commentary. ”For now, it’s more concerned about the risk that US trade policies could break the virtuous circle of wage growth and inflation.”
Hong Kong’s Hang Seng index jumped 1.2% to 23,504.59, while the Shanghai Composite gained 0.1%, reversing earlier losses, to 3,364.83. China’s central bank kept its key 1-year and 5-year loan prime rates unchanged, as expected.
Australia’s S&P/ASX 200 shed 0.3% to 8,500.40 while South Korea’s Kospi gained 1.2% to 3,014.05.
“Risk sentiments were cautious as Iran-Israel tensions continued roiling,” Mizuho Bank Ltd. said in a commentary.
On Thursday, the Bank of England kept its main interest rate at a two-year low of 4.25%, citing risks that the conflict between Israel and Iran will escalate.
The U.S. dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to $1.1530 from $1.1498.
