Oil Wavers, Stocks Jump As Markets Await US Fed Decision Amid War Tensions

(MENAFN- AsiaNet News)

Global markets showed a mixed but calm trend as stocks rose and oil prices fluctuated. WTI crude fell while Brent stayed steady near $100/barrel after Iraq resumed limited exports. Investors are focused on US Fed decision and signals on inflation.

Global markets showed a calm mood on Wednesday as investors turned their attention to the US Federal Reserve and its upcoming decision on interest rates. Stock markets rose in many regions, while oil prices moved up and down.

Traders expect the Fed to keep interest rates unchanged. However, they are closely watching the comments from Fed Chair Jerome Powell for signals about inflation and the impact of rising oil prices.

Other major central banks, including the European Central Bank, Bank of England and Bank of Japan, are also expected to keep borrowing costs steady.

Oil prices showed mixed movement during the day. The US benchmark West Texas Intermediate fell 1.8 percent to $94.45 per barrel after a sharper drop earlier in Asian trading. Meanwhile, Brent Crude remained flat at $103.46 per barrel.

The movement came after Iraq announced that it had restarted limited oil exports through the Turkish port of Ceyhan. This route avoids the Strait of Hormuz, which has been heavily disrupted.

Despite this, oil prices stayed close to $100 per barrel due to ongoing conflict in the Middle East.

The global oil market remains under pressure due to the conflict involving Israel and Iran. Fresh strikes and military actions in the region have raised fears about supply disruptions.

The United States has also carried out heavy strikes near the Strait of Hormuz to target missile sites that could threaten shipping routes.

Iran has warned of retaliation after Israel claimed it had killed senior leader Ali Larijani. Israel has also continued strikes against the Iran-backed group Hezbollah in Lebanon.

Experts say oil prices may fall further only if tensions ease and normal supply routes reopen.

Stock markets saw gains in Europe and Asia. In Europe, Frankfurt, Paris and London markets all rose by around one percent or less.

Asian markets followed a strong session on Wall Street. The rally in the US was supported by major tech companies like Apple and Amazon.

Seoul saw a sharp jump of over five percent, led by chip makers Samsung and SK hynix.

Japan’s Nikkei 225 rose 2.9 percent, while markets in Hong Kong and Shanghai also ended higher.

Even with gains in stocks, experts warned that market confidence could weaken if the Middle East crisis continues.

They said that while news of Iraq resuming oil exports has helped calm markets, the bigger concern remains the situation around the Strait of Hormuz.

If tensions rise further, oil prices could increase again and affect global markets.

Key market figures

At around midday GMT, Brent crude stood at $103.46 per barrel, while WTI was at $94.45.

Stock indices showed gains: London’s FTSE 100 rose 0.4 percent, Paris CAC 40 climbed 1.1 percent, and Frankfurt DAX gained 0.9 percent.

In Asia, Tokyo’s Nikkei rose 2.9 percent, Hong Kong’s Hang Seng added 0.6 percent, and Shanghai Composite gained 0.3 percent.

Currency markets saw small changes, with the euro and pound rising slightly against the dollar.

(With AFP inputs)

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