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Asian Shares Mixed, Oil Rises as Markets Await U.S. Move on Iran
Asian markets delivered a mixed performance today as investors reacted to mounting geopolitical tensions in the Middle East. Oil prices rose for the third straight week, while regional equities were broadly divided, reflecting growing uncertainty over whether the United States will join Israel in escalating military action against Iran.
Market Jitters Intensify as Geopolitical Risks Rise
Investor sentiment remained fragile across Asia, with market participants closely watching diplomatic developments. President Trump’s recent statement that a decision on U.S. involvement in the Israel-Iran conflict will be made within two weeks has heightened caution among traders. The uncertainty surrounding this potential move has led to choppy market behavior and increased appetite for safe-haven assets.
Major indexes reflected the region’s cautious stance. Japan’s Nikkei was flat after modest earlier gains in tech and chip stocks were offset by real estate and industrial losses. In Hong Kong, the Hang Seng Index edged higher, helped by select tech rebound and lower interest rate expectations. Meanwhile, mainland China’s CSI 300 saw limited movement as investors awaited further clarity on global developments and domestic policy cues.
Oil Prices Climb on Supply Fears
In commodities, oil continued its upward trajectory. Brent crude edged closer to $78 per barrel, fueled by concerns over possible supply disruptions if conflict in the Middle East intensifies. The global benchmark has gained over 5% this month, largely on the back of geopolitical risk premiums.
Energy traders remain wary of any indication that the U.S. might launch or support military action, which could endanger key oil transport routes and further strain global supply chains. The oil rally is also bolstered by a recent drop in U.S. inventories and stronger-than-expected demand data.
Currency markets were relatively calm, with the U.S. dollar easing slightly after recent strength, while the Japanese yen firmed on safe-haven flows. Gold prices also saw minor gains, reflecting the cautious tone in broader markets.
In summary, Asian markets are navigating a complex environment shaped by geopolitical risk, oil price volatility, and global policy uncertainty. With the world watching closely for the U.S. decision on Iran, market direction in the coming days will hinge heavily on political developments and investor sentiment.
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