Oil climbs to $124 and stock markets fall
The price of oil continues its climb and rises more than 5%, to $124 per brent barrel, its highest level in almost four years, due to the lack of progress in reopening the Strait of Hormuz and the risk that the United States could attack Iran again, which also weighs on investor sentiment, despite the boost provided by the mostly positive results of large technology companies.
Asian stocks mostly post losses. Japan’s Nikkei 225 falls 1.4%, China’s Shanghai Composite index trades practically flat and Hong Kong’s Hang Seng falls 1.5%. US futures point to slight increases, while the EuroStoxx 50 anticipates an opening with falls of around 0.5% in another session full of corporate results.
Oil rises for the ninth day in a row, which would be the longest bullish streak since May 2022, following a report that the United States was considering additional military action against Iran. The commodity has soared more than 100% this year, and most of that rise occurred after the US and Israeli attack on Iran at the end of February. Prices extend increases after US President Donald Trump told Axios that he will not lift the naval blockade of Iranian ports until he reaches a nuclear deal with Tehran. Thus, geopolitical risks intensify with Donald Trump preparing a prolonged blockade of Iran.
