Global markets started the week on an uneasy note on Monday, with oil prices rising sharply while stock futures slipped, reflecting growing concern among investors over ongoing tensions in the Middle East and uncertainty in global economic policy.
Oil prices surged as hopes for progress in US-Iran talks faded, prolonging disruptions to energy supplies. Brent crude climbed more than 2 per cent in early Asian trading, touching around $107.97 per barrel - its highest level in three weeks. The continued blockage of the Strait of Hormuz, a vital route for global oil shipments, is keeping markets on edge.
The spike in oil prices is also raising fresh worries about inflation, which could make it harder for central banks to lower interest rates anytime soon.
At the same time, US stock futures dipped slightly, with S&P 500 futures down 0.3 per cent after a strong finish last week. Investors remain cautious despite recent gains, especially as they await key economic signals in the days ahead.
Currency movements were relatively modest. The US dollar edged up slightly, while the euro and Japanese yen weakened a bit against it.
Energy costs are rising beyond oil as well. Liquefied natural gas (LNG) prices in Asia have jumped significantly, now about 60 per cent higher than before the recent conflict, adding further pressure on global markets.
Looking ahead, investors are keeping a close eye on a busy week of central bank meetings. Major institutions including the US Federal Reserve, Bank of Japan, European Central Bank and Bank of England are expected to hold interest rates steady, but their signals about the future will be crucial.
There is also strong anticipation around earnings from major US tech companies such as Microsoft, Amazon and Apple, with optimism around artificial intelligence continuing to drive market interest.
Asian stock markets showed mixed trends, with gains in Japan and South Korea, while Australia saw slight declines in quieter holiday trading.
