Crude oil prices declined slightly and Asian stock markets showed mixed performance on Friday, as investors awaited signals on whether the U.S. would intervene in the ongoing conflict between Israel and Iran.
U.S. stock futures also inched down following the Juneteenth holiday closure on Wall Street.
West Texas Intermediate (WTI) crude dropped 24 cents to $73.64 per barrel, while global benchmark Brent crude slipped 18 cents to $76.56. Oil prices have remained volatile amid growing concerns that the Iran-Israel conflict could disrupt global crude supplies. Iran is a key oil producer and controls the Strait of Hormuz, a critical chokepoint for global oil shipments.
Investor sentiment remained cautious after the White House indicated former President Donald Trump may make a decision within two weeks on whether to launch strikes against Israel, though diplomatic avenues remain on the table, according to trader Anderson Alves of ActivTrades.
“Tensions between Iran and Israel continued to weigh on risk appetite,” Mizuho Bank noted in a commentary.
Meanwhile, Tokyo’s Nikkei 225 slipped 0.2% to 38,403.23 after core inflation rose to 3.7% in May, complicating policy decisions for Prime Minister Shigeru Ishiba and the central bank. ING’s Min Joo Kang said the Bank of Japan is likely to focus more on the potential impact of U.S. tariffs on Japan’s economic recovery.
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Elsewhere, Hong Kong’s Hang Seng rose 0.8%, the Shanghai Composite dipped 0.1%, Australia’s ASX 200 fell 0.2%, and South Korea’s Kospi advanced 1.5%.
The Bank of England kept its key interest rate steady at 4.25%, citing escalating geopolitical risks.
In currency markets, the U.S. dollar eased to 145.37 yen, while the euro edged up to $1.1521.
Source: With inputs froma agency