By Ronnie Harui
Oil climbed and Asian equity markets fell after the U.S. carried out strikes on Iranian nuclear sites over the weekend, raising concerns about an escalation of the conflict that began with Israeli attacks on Iran.
Front-month WTI crude oil futures rose 2.8% to $75.89 a barrel on Monday, and front-month Brent crude oil futures added 2.7% to $79.09 a barrel
The U.S. attacked three Iranian sites that represent the core of the country's nuclear infrastructure. President Trump hailed the strikes as a "spectacular military success" in an address Saturday night, while warning that more could follow if "peace does not come quickly."
There are concerns over Iran's retaliation to the U.S. involvement in bombing Iran, Phillip Securities Research's Paul Chew said in a commentary.
Polymarket, a prediction market, assigns 59% odds of Iran closing the Strait of Hormuz, the head of research said. Around 80% of the oil and gas passing the Strait goes to Asia, Chew added.
If there where a full stop to traffic in the waterway, world oil supply would suddenly fall by more than 18 million barrels a day, or by almost 20%, said Danske Bank chief analyst Minna Kuusisto. "For LNG, there is no alternative route, and hence, the impact would be similarly severe for the global gas market," the analyst said.
Japan's Nikkei Stock Average declined 0.4% in early trading, South Korea's Kospi dropped 1.0%, and Australia's S&P/ASX 200 index shed 0.8%.
U.S. stock-index futures were also lower, with the eMini Nasdaq 100 slipping 0.5%, the eMini S&P 500 losing 0.4%, and the eMini Dow falling 0.4%.
The dollar strengthened against most G-10 and Asian currencies amid potential safe-haven demand. The ICE US Dollar Index rose 0.3%, and edged 0.2% higher against the Swiss franc, FactSet data showed.
Spot gold edged 0.1% lower to $3,363.58 per troy ounce.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
06-22-25 2133ET
