Oil Surges Above $93 as US-Iran Tensions Escalate, Global Markets Turn Cautious

Investors weigh geopolitical risks after fresh US strikes on Iran spark fears of wider disruption to global energy supplies….

Oil prices climbed sharply on Wednesday after renewed US military strikes in Iran heightened fears of a broader conflict in the Middle East, fueling concerns over global energy supplies and rattling financial markets.

Brent crude jumped more than three percent, briefly trading above $94 per barrel, after US President Donald Trump declared that Washington was “not finished” with its military campaign against Iran.

According to the US military, the latest operation targeted key military logistics infrastructure, while Iranian state media reported explosions in several parts of the country, including near Bushehr, home to one of Iran’s nuclear power facilities.

The renewed hostilities also raised concerns over shipping routes after Trump warned that the United States would respond if Yemen’s Iran-backed Houthi movement followed through on threats to block Saudi Arabian ports.

Such a move could significantly disrupt global trade, as the Houthis have previously targeted vessels passing through the Red Sea and the strategic Bab al-Mandab Strait one of the world’s busiest maritime chokepoints connecting the Suez Canal to international shipping lanes.

Market analysts say investors are closely watching developments, with oil prices likely to remain highly sensitive to events in the region.

“Our expectation is that prices could remain in the $80 to $90 range depending on how the situation unfolds,” said Jay Hatfield of Infrastructure Capital Management. He added that any prolonged disruption to Red Sea shipping could send crude prices above $100 per barrel.

Despite geopolitical concerns, technology stocks continued to show resilience. Asian markets initially extended gains from Wall Street’s strong performance before losing momentum later in the session.

Japan’s Nikkei pared earlier advances to finish slightly lower, while South Korea’s benchmark index still closed with modest gains. Hong Kong ended the day in negative territory, while mainland China’s Shanghai Composite posted a slight increase.

European markets also opened higher, with London’s FTSE 100, Paris’ CAC 40 and Frankfurt’s DAX recording modest gains in early trading.

Investors are now turning their attention to earnings from major US technology companies. Results from Tesla and Alphabet are due later Wednesday, while Microsoft, Meta, Apple and Amazon are scheduled to report next week.

Analysts say the earnings season could provide fresh insight into whether heavy spending on artificial intelligence is translating into sustainable growth.

Meanwhile, Japan’s yen remained under pressure, trading near its weakest level against the US dollar since 1986. The currency slipped beyond the 163-per-dollar mark despite assurances from Japanese Finance Minister Satsuki Katayama that authorities stand ready to take decisive action if needed.