Brent Crude Nears $100 as Middle East Tensions Shake Markets

Brent crude prices moved sharply higher on Wednesday as the Middle East conflict intensified.

The rise in oil prices weighed on investor sentiment across Asian markets. Traders also turned cautious ahead of key US inflation data.

Oil Prices Rise for Fourth Session

Brent crude futures rose $1.57, or around 1.6%, to $99.49 a barrel.

The contract reached its highest level since late June.

US West Texas Intermediate (WTI) crude also gained $1.60 to $94.63 a barrel.

Oil prices have now risen for four consecutive sessions.

PSX Turns Volatile as KSE-100 Swings Between Gains and Losses

The latest gains came as attacks spread across the region. Iran-backed Houthis in Yemen launched strikes on several Saudi cities on Tuesday.

US forces also struck several Iranian oil tankers. Iran, meanwhile, attacked a US base in Jordan.

The developments raised concerns about further disruption to regional energy supplies.

Asian Stocks Trade Mixed

Asian stock markets remained under pressure as investors assessed the impact of rising oil prices.

Australia’s S&P/ASX 200 slipped around 0.3%. Hong Kong’s Hang Seng Index fell 0.6%.

Mainland Chinese blue-chip stocks edged up 0.2%.

Some markets recovered as chip and artificial intelligence stocks gained.

Japan’s Nikkei rose 0.6% after falling 1.7% on Tuesday. South Korea’s KOSPI jumped 1.6%, while Taiwan’s TAIEX gained 0.6%.

Japanese cable makers also advanced after Verizon and Corning announced a deal involving high-density optical fibre.

Investors Await US Inflation Data

Markets are closely watching US consumer price data due on Friday.

Higher oil prices have renewed concerns about inflation. They have also increased expectations that central banks could keep interest rates higher for longer.

Chris Weston, head of research at Pepperstone, said major markets were showing indecision, with prices moving within tight ranges.

He described Brent crude as one of the clearest real-time signals of broader market sentiment. He also said the $100 level now appeared achievable.

Yen Strengthens as Rate Hike Bets Rise

The Japanese yen strengthened around 0.2% to 153.66 per dollar.

The currency moved closer to its recent high of 152.89.

The yen has gained about 4% over the past five sessions.

Traders have increased bets on faster Bank of Japan rate hikes. Expectations of Japanese capital returning home have also supported the currency.

Markets now see the BOJ as highly likely to raise rates by a quarter point at its upcoming meeting.

Euro Gains Ahead of ECB Decision

The euro edged up 0.1% to $1.1629 ahead of Thursday’s European Central Bank policy decision.

Markets widely expect the ECB to raise interest rates by a quarter point. Inflation pressures linked to the Iran conflict have strengthened expectations for tighter policy.

Sterling was little changed at $1.3545.

The Australian dollar gained 0.1% to $0.7222.

Bitcoin also moved higher, trading around $78,680.60.

Gold rose 0.3% to about $4,368 an ounce.

The US S&P 500 futures gained 0.1% after the benchmark index fell 0.6% on Tuesday.