Investing.com– Asian stock markets fell on Thursday after two days of gains, as oil prices surged back near $100 per barrel, with fresh supply disruptions amid a heightened war in the Middle East.
U.S. stock index futures also slipped during Asian hours as of 02:38 GMT.
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Oil prices surge near $100/barrel; Nikkei drops 2%
Oil prices surged more than 7% in early trading after reports showed that two international oil tankers were attacked in the northern Persian Gulf near Iraq and Kuwait.
Iraqi media channels attributed the strike to Iran, raising concerns the conflict could spread further across key energy routes.
Japan’s dropped 2%, while the broader index slipped 1.6%.
South Korea’s declined 1.1%, while Australia’s S&P/ASX 200 index dropped 1.7%.
Oil prices were also boosted by reports of further strikes on commercial vessels passing through the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
The rally in crude came despite efforts by governments and global institutions to stabilize markets. Crude was trading back near $100 per barrel after having surged close to $120 earlier this week.
Iran warned that the world should prepare for oil prices potentially reaching $200 per barrel if the conflict escalates further.
Rising oil fuels inflation worries
Investors fear that sustained higher oil prices would fuel inflation fears and complicate the outlook for central banks, which are already grappling with the balance between controlling price pressures and supporting economic growth.
Investors are now awaiting the release of the U.S. on Friday, the Federal Reserve’s preferred inflation gauge, for further clues on the future path of U.S. monetary policy.
Elsewhere in Asia, China’s index edged 0.2% lower, while Shanghai Shenzhen dipped 0.6%. Hong Kong’s fell 1.1%.
Singapore’s Straits Times Index edged down 0.3%, while futures tied to India’s slipped 0.7%.