Oil prices rose by around 3% on Thursday, recovering part of the losses recorded in recent days, while Asian markets came under pressure following reports of renewed US military action against Iran and missile activity targeting a US base in Kuwait.
With traffic through the Strait of Hormuz still limited, Brent crude climbed as much as 3.6% at the start of trading, reaching 97.71 dollars per barrel, while US crude rose 3.8% to 92.05 dollars.
By 09:30 Cyprus time, Brent was up 2.8% at 96.96 dollars per barrel, while US crude gained 2.9% to 91.20 dollars. Overall, oil prices have increased by approximately 59% since the start of 2026.
In Asia, stock markets fell sharply before paring losses later in the session. Japan’s Nikkei dropped 1.4%, while South Korean shares fell by 3.2%. The broader MSCI Asia‑Pacific index excluding Japan declined by 2.1%.
Yields on 10‑year US government bonds rose by four basis points to 4.526%, as the risk of sustained high oil prices fuelled expectations of renewed inflationary pressures.
According to reports, Citigroup warned that the prolonged rise in crude prices is beginning to feed broader inflation, particularly through secondary effects, prompting some central banks to adopt a more aggressive stance.
However, the bank also cautioned that uncertainty over the timing of any potential agreement in the Middle East is keeping policymakers cautious, with discussions of tighter monetary policy continuing in response to energy‑driven inflation risks.
“The next two weeks could bring either a new ceasefire agreement or a collapse of the current truce and a return to hostilities,” said Madison Cartwright, senior geo‑economics analyst at CBA.
He estimated a 70% chance of a deal being reached, but warned that the future of the Strait of Hormuz remains uncertain.
Insurance costs for passage through the strait have surged, with no clarity yet on pricing or availability. Questions also remain over whether Iran might impose transit fees or introduce alternative charging mechanisms for shipping.
Source: CNA
