Asian Markets Risk Off, Oil Surges Again Amid Iran War
Asia-Pacific markets weakened on Thursday, as investors continued to grapple with oil price volatility and escalating tensions in the Middle East. The pressure came despite the US and its allies announcing an unprecedented emergency release of oil reserves, aimed at cushioning the energy shock from the Iran war.
The International Energy Agency (IEA) is said to be releasing 400 million barrels of oil in response to supply disruptions related to the Iran conflict—the largest such move in the organization's history. However, the IEA did not specify when the stockpiles would actually enter the market, leading market participants to believe the impact of the withholding may not be immediately felt.
From the US side, Energy Secretary Chris Wright said the government would release 172 million barrels from the Strategic Petroleum Reserve (SPR) to help lower energy costs. This announcement came after President Donald Trump had previously stated that he would use the SPR to stem the surge in energy prices.
Despite these measures, oil prices continued to strengthen. WTI rose more than 6% and returned to near $93 per barrel by evening US time, confirming that the market is still paying a risk premium as long as the conflict remains unabated and global energy flows remain clouded by uncertainty.
In the stock market, risk-off pressures were evident. Australia (S&P/ASX 200) fell around 1.56%. Japan (Nikkei 225) weakened around 1.6%, and the Topix fell 1.34%. South Korea (Kospi) also corrected by around 0.75%. Meanwhile, Hang Seng futures were around 25,756, below the index's last close.
Newsmaker's Bottom Line: The emergency reserve release could act as a short-term brake, but Asian markets are not yet feeling secure as oil volatility remains high and the timeline for stock release remains unclear. As long as the Iran war continues to fuel supply uncertainty and energy inflation, the market tends to remain fragile and moves heavily based on headlines. (asd)
Source: Newsmasker.id
