Photo courtesy of Yonhap News

 

[Alpha Biz= Paul Lee] Asian stock markets fell sharply Monday as global oil prices surged past $110 a barrel and briefly approached $120 amid escalating tensions in the Middle East.

Japan’s benchmark Nikkei 225 dropped as much as 7.57% during trading before closing down 5.2%, marking one of its steepest declines on record. Other regional markets also fell, including Australia’s S&P/ASX 200, Hong Kong’s Hang Seng Index, China’s CSI 300 and Taiwan’s TAIEX.

Oil prices spiked after major Middle Eastern producers such as Kuwait, Iraq and the United Arab Emirates cut output following disruptions around the Strait of Hormuz, raising concerns over energy supply shocks for Asia’s oil-dependent economies.

According to CNBC, Brent crude futures on London’s ICE Futures Europe jumped as much as 27.8% to $119.04 a barrel, while West Texas Intermediate rose about 30% intraday to $118.46.

Oil prices later eased below $110 after reports that the Group of Seven was discussing a coordinated release of strategic petroleum reserves with the International Energy Agency, helping Asian markets recover part of their losses.

 

 

 

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