Oil prices moved higher after the United States carried out new strikes linked to Iran and reinstated sanctions on Tehran, adding to concerns over supply and geopolitical risk, according to the report.
The rise in crude came as investors also reacted to reports of an attack on a liquefied natural gas tanker in the Strait of Hormuz, a strategically important shipping route. The developments helped push oil prices up by more than 3% and added to a broader risk-off mood in global markets.
Asian stock markets were mostly weaker, with losses spreading into Europe and modest declines also seen on Wall Street on Tuesday. In London, the FTSE 100 fell 1.2%, while Frankfurt’s Dax and Milan’s FTSE Mib were both down 1.1%. Paris and Madrid also recorded declines. Samsung Electronics shares fell for a second day, even after strong results, as investors worried about stretched technology valuations.
Market sentiment was further pressured by comments from Donald Trump, who said a memorandum of understanding with Iran was “over” and described talks with Tehran as a waste of time. The report said the renewed tension has raised doubts about the outlook for stability in the Middle East and could complicate the inflation picture that policymakers are watching closely.
Source: theguardian.com
