Oil jumps, Asian stocks slip as US-Iran fighting rattles markets
Why it matters: Brent climbed above $80 this week as thinner Hormuz traffic revived inflation fears and pushed bond yields higher.
Oil prices surged and Asian shares wobbled after renewed US-Iran fighting in and around the Strait of Hormuz shook markets and raised fears of supply disruptions. Brent crude rose above $80 a barrel during the week, while West Texas Intermediate later settled near $71 but still posted a weekly gain. MSCI’s Asia-Pacific index outside Japan fell 0.5% as an early rally faded, and global bond yields climbed as traders priced in a greater inflation risk. The flare-up followed new US strikes on Iran after an attack on a container ship in the strait. Tanker traffic through Hormuz thinned sharply, though talks between Washington and Tehran continued and some ship movements resumed under US protection.