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Asia-Pacific markets fall after US strikes on Iran; oil prices surge, dollar strengthens

Asia-Pacific markets fall after US strikes on Iran; oil prices surge, dollar strengthens

By Kim Browne

Culture

Asia-Pacific markets declined in early trade on Monday morning, as oil prices surged and the US dollar reacted, after the US launched strikes against three nuclear facilities in Iran over the weekend.

Japan’s Nikkei 225 tumbled 0.69 per cent while South Korea’s Kospi fell over 1 per cent. Australia’s ASX was down around 0.3 per cent.

Oil prices surged in early trade on Monday, with Brent and the main US crude contract WTI both climbing more than four per cent to hit their highest price since January before paring gains. Brent was last up 2.4 per cent at US$78.83 per barrel and WTI was up 2.5 per cent at US$75.66.

Crude prices had already spiked last week after Israel attacked Iran. Brent has risen 13 per cent since the conflict began on June 13, while WTI has gained around 10 per cent, according to Reuters data on Monday.

The US dollar index rose 0.3 per cent, strengthening slightly around 0.12 per cent to the Singapore dollar at around S$1.2884, after 8am Singapore time.

On Saturday, US President announced strikes against three Iranian nuclear facilities, boosting Israel’s efforts to destroy Iran’s nuclear programme. This followed more than a week of Israeli air attacks on Iran’s nuclear and military facilities and US attempts to persuade Iran to reach a deal to dismantle its nuclear programme.

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A senior white house official said that the president decided to proceed with the strikes after becoming convinced that Tehran had no interest in reaching a nuclear agreement.

In response, Iran on Sunday threatened US bases in the Middle East, intensifying concern of a deepening of conflict in the region.

An advisor to Iran’s supreme leader Ayatollah Ali Khamenei Ali Akbar Velayati said bases used by US forces could be attacked in retaliation given that the US “has attacked the heart of the Islamic world and must await irreparable consequences”.

He warned that countries in the region or elsewhere used by US forces to strike Iran would be considered legitimate targets for Iran’s armed forces.

Please check back for more updates.

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Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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