Oil Prices Surge as Iran Conflict Heats Up Again
Oil prices have strengthened again following a flare-up of fighting in the Middle East, ending a brief lull in the conflict. In trading on Wednesday (July 29), Brent crude was seen hovering between US$81 and US$84 per barrel, having previously climbed to the US$87 range, while WTI traded between US$81 and US$82 per barrel.
The rise in oil prices followed a statement from the US military claiming it had successfully thwarted a surprise attack by Iran against US forces in the Middle East. This development has reignited concerns regarding the security of energy supplies in the region.
Market attention has once again turned to the Strait of Hormuz, as any disruption to this route could hinder global oil shipments. The risk of rising energy prices also threatens to intensify inflationary pressures ahead of the Federal Reserve's interest rate decision.
In stock markets, the MSCI Asia Pacific index rose 0.7%, while South Korean markets gained approximately 2%. SK Hynix shares were a key driver of this growth after the company reported a 557% surge in quarterly profits.
However, the global semiconductor sector remains under pressure due to concerns over high artificial intelligence (AI) spending and intensifying competition from China. The Philadelphia Semiconductor Index had previously fallen 4.5% as investors awaited earnings reports from Microsoft, Meta, Apple, and Amazon.
Regarding market impact, oil prices could rise further if the conflict escalates or shipping through the Strait of Hormuz is disrupted. Meanwhile, technology stocks remain volatile ahead of the Fed's decision and major corporate earnings reports, although gains in Asian markets have provided some support for market sentiment. (asd)*
Source: Newsmaker.id
