Mumbai: Markets in Asia fell as tensions between the US and Iran escalated once again. The warring nations exchanged fire in the Strait of Hormuz even as media reports indicated that US President Donald Trump said the ceasefire was still in place. This has lowered the prospects of a positive outcome from peace talks.
Brent Crude oil futures climbed above $101 per barrel. The S&P ASX 200, Hang Seng, and the KOSPI indices fell the most in the region. "Iran is not a normal Country. They are led by LUNATICS, and if they had the chance to use a Nuclear Weapon, they would do it, without question — But they'll never have that opportunity and, just like we knocked them out again today, we'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!," Trump said in a post on Truth Social.
Higher crude oil prices are weighing on Asian economies, most of which are net importers of crude and crude-linked derivatives. "...significant differences in inflation impact across economies, with some seeing more notable price spikes than others.
In our view, such divergence is largely due to varying degrees of passthrough from global energy prices to domestic retail fuel," BofA Securities said in a report. Inflation in Asia accelerated to 2.2% on year in March from 1.9% in February, the report highlighted.
Disclaimer: This story is from the syndicated feed. Nothing has been changed except the headline.
