Hong Kong, April 9
Oil prices climbed back above USD 97 a barrel on Thursday, while Asian equity markets slid lower, as investors grew increasingly skeptical about the durability of the two-week ceasefire between the United States and Iran, which had briefly lifted sentiment across global markets just a day earlier.
The truce, announced by US President Donald Trump late Tuesday, came under strain within hours. Israeli airstrikes in Lebanon resulted in significant casualties, leading Iran to close the Strait of Hormuz again. The waterway, which handles about one-fifth of global daily oil supply, had briefly reopened before traffic stopped. Washington continues to call for the strait’s full reopening, a key condition of the ceasefire.
Brent crude rose 2.4 percent to USD 97.02 a barrel on Thursday, after briefly dropping below USD 92 following the ceasefire announcement. US benchmark crude increased 3.3 percent to USD 97.50 a barrel, reversing earlier losses tied to de-escalation hopes.
Across Asian markets, the mood was cautious. Japan’s Nikkei 225 fell 0.9 percent to 55,824.30 and South Korea’s Kospi dropped 1.6 percent to 5,776.03. Hong Kong’s Hang Seng index lost 0.4 percent to close at 25,801.87, while China’s Shanghai Composite declined 0.7 percent to 3,965.70. Australia’s S&P/ASX 200 eased 0.1 percent, and Taiwan’s Taiex also edged down 0.1 percent. US futures were lower by more than 0.1 percent.
Wall Street had painted a very different picture on Wednesday, with markets surging after Trump’s ceasefire announcement. The S&P 500 jumped 2.5 percent to 6,782.81, the Dow Jones Industrial Average rose 2.9 percent to 47,909.92, and the Nasdaq Composite gained 2.8 percent to 22,635.00. Travel and hospitality stocks, which had been among the hardest hit since the conflict began driving fuel costs higher, rallied sharply. United Airlines gained 7.9 percent, American Airlines rose 5.6 percent, and cruise operator Carnival Corporation surged 11.2 percent on hopes that a de-escalation could ease energy cost pressures.
Diplomatic efforts toward a permanent settlement are ongoing. Talks for a long-term resolution are expected to begin Friday in Pakistan, with US Vice President JD Vance leading the American delegation.
In currency and precious metals markets, the US dollar edged up to 158.66 Japanese yen from 158.57 yen. The euro was trading at USD 1.1668. Gold fell 0.7 percent to USD 4,743.20 per ounce, while silver declined 1.6 percent to USD 74.18 per ounce.
Uncertainty over global energy supply remained the overriding concern for markets. Analysts and investors were watching closely to see whether the ceasefire would survive the competing pressures of Israeli military operations in Lebanon, Iranian demands over the strait, and a fraught diplomatic process with no guaranteed outcome. The resumption of full tanker traffic through the Strait of Hormuz remains the clearest indicator for markets to gauge whether the truce will hold. Oil Rebounds Above USD 97 a Barrel as Asian Markets Fall on Ceasefire Doubts.
