Oil prices rose on Wednesday amid expectations of a potential lasting ceasefire between Iran and Israel. At the same time, Asian markets steadied and the dollar slightly weakened.
Oil Prices and Conflict Impact
Brent crude futures jumped by 1.3% to $67.99 per barrel, while U.S. West Texas Intermediate climbed 1.4% to $65.24. Prices had reached multi-week lows earlier and briefly spiked after U.S. airstrikes against Iranian nuclear facilities. JP Morgan analysts noted that "global energy prices are moderating following the Israel-Iran ceasefire."
Asian Markets and the Dollar
Japan's Nikkei and Australia's S&P/ASX 200 remained flat, while Taiwan's TAIEX rose 1%. Hong Kong's Hang Seng increased by 0.6%, and China's CSI 300 eased 0.1%. The dollar fell by 0.1% against the yen, reaching 144.70.
Economic Forecasts and Risks
Economists stress that "the ceasefire may prove fragile," but as long as both parties refrain from attacking export-related energy infrastructure and do not disrupt shipping flows through the Strait of Hormuz, bearish fundamentals in the oil market are expected to continue. Long-term forecasts remain uncertain, given the recent decline in U.S. consumer confidence.
In light of the escalation and subsequent cessation of conflict between Iran and Israel, oil prices and global financial markets are showing signs of stability. However, the economic situation remains closely monitored and requires careful analysis.
