- Oil climbs back above £75 ($100) after sharp drop
- US–Iran mixed signals unsettle global energy markets
- Asian stocks steady after earlier sell-off
Oil prices are back above £75 ($100) a barrel, but the bigger story is how quickly things are swinging. The latest move comes after a sharp drop on March 24, followed by a rebound as mixed signals from the US and Iran left markets trying to read between the lines.
Brent crude rose about 4 per cent in Asian trading to £77.57 ($103.94) a barrel. Just a day earlier, prices had fallen more than 10 per cent after US President Donald Trump suggested there had been “productive” conversations with Tehran and delayed possible strikes on Iranian power plants.
That briefly calmed markets. But the mood didn’t last long. Iran pushed back, denying any talks had taken place and suggesting the claims were meant to influence market sentiment, as quoted in a news report.
Strait tensions keep oil on edge
At the centre of it all is the Strait of Hormuz, a narrow but critical shipping route that carries about 20 per cent of the world’s oil and liquefied natural gas. Since the conflict escalated on February 28, the route has effectively been blocked, tightening global supply.
The back-and-forth between Washington and Tehran has only added to the uncertainty. Trump had earlier warned that Iranian energy infrastructure could be “obliterated” if the strait was not reopened within 48 hours, reportedly said in a news report. Iran responded by warning it could target key infrastructure across the region.
These developments pushed oil prices as high as around £84 ($113) a barrel before the temporary pullback.
Global energy markets have remained volatile ever since the US and Israel launched strikes on Iran in late February, with prices reacting sharply to every new development.
Stocks steady, but risks remain
Despite the turbulence in oil, Asian stock markets showed signs of stabilising on March 25. Japan’s Nikkei rose 0.8 per cent, Hong Kong’s Hang Seng gained 1.6 per cent, and South Korea’s Kospi climbed 2.2 per cent after heavy losses earlier in the week.
Many Asian economies depend heavily on energy supplies that pass through the strait, which helps explain the sharp reactions seen earlier.
Governments are already stepping in to limit the fallout. The US has temporarily eased sanctions on some Russian and Iranian oil shipments to help address shortages. China has also scaled back planned fuel price increases, reportedly aiming to reduce pressure on consumers as energy costs rise.
For now, markets appear to be reacting less to what is confirmed and more to what might happen next.
