Oil prices have stormed back above $100 a barrel for the first time in two months, hitting six-week highs. This surge comes amid an intensifying conflict in the Gulf and an escalating war between the U.S. and Iran.
Asian equities experienced significant volatility. Stocks initially rose on Thursday, driven by U.S. technology firms outlining significant capital spending plans expected to benefit regional chipmakers. However, shares later tumbled on Thursday and fell again on Friday after oil prices crossed the $100 per barrel threshold.
The market declines followed a sharp Wall Street selloff and increasing instability in bond markets. The intensifying conflict in the Middle East has stoked fears of a fresh inflation shock and renewed inflation concerns.