Global Market Today: Oil gains as Trump escalates threats, Asian stocks waver
Why it matters: The roughly $1-per-gallon increase in US gasoline pump prices will likely drive March consumer price index up 1%.
- Brent crude rose 1.9% to trade above $111 a barrel after Trump renewed threats to attack Iranian infrastructure if the Strait of Hormuz remains closed.
- Trump issued an unexplained tweet stating “Tuesday, 8:00 P.M. Eastern Time!” following his threats, and plans a news conference Monday at 1 p.m. New York time.
- US equity-index futures erased early losses to trade little changed, while Asian stocks edged up, with Nikkei rising 0.7% and South Korean shares advancing 2%.
- OPEC+ warned that damage to Mideast energy assets will have a prolonged impact on oil supply, even as attacks continue around the region.
- Homin Lee, a strategist at Lombard Odier, notes that investors' focus will be on military actions and whether Hormuz vessel crossings improve, despite acknowledging Trump's past de-escalations.
- The Islamic Republic's continued attacks damaged Kuwait’s oil headquarters and shut down an Emirati petrochemicals plant, though Fars news agency reports 15 ships passed through the Strait of Hormuz with Iranian permission.
- US inflation data, due Friday, is expected to show the March consumer price index up 1%, driven by a roughly $1-per-gallon increase in US gasoline pump prices.
Oil prices surged above $111 a barrel as former President Trump escalated threats against Iranian infrastructure and the Strait of Hormuz, while Asian stocks showed mixed reactions with Japan's Nikkei up 0.7% and South Korea's shares advancing 2%. Investors are grappling with the potential for prolonged oil supply disruptions, as OPEC+ warns of lasting damage to Mideast energy assets, and the economic fallout threatens to push US inflation higher.
