Asia-Pacific markets opened higher on Tuesday as oil prices eased following President Trump’s decision to postpone a scheduled military strike on Iran. West Texas Intermediate futures dropped 1.27% to $107.28 per barrel, while Brent crude fell 2.67% to $109.11. This development, coupled with Japan’s first-quarter GDP growth of 2.1%—exceeding analysts’ forecasts—boosted investor sentiment, particularly in Japan where the Nikkei 225 rose 0.68%.
The easing of oil prices may provide temporary relief to markets, but ongoing geopolitical tensions in the Middle East, especially the conflict with Iran, continue to pose risks. Moody’s cautioned that the closure of the Strait of Hormuz by Tehran and the U.S. blockade of Iranian ports could hinder oil supply stability, impacting global markets. Futures for major U.S. indices showed modest gains, indicating cautious optimism among investors.
Market professionals should monitor the evolving geopolitical landscape, as any escalation could significantly influence oil prices and broader market performance.
Source: cnbc.com