Asian markets volatile as oil swings, Iran conflict rattles global outlook

Asian markets showed mixed performance on March 17 as volatile oil prices and ongoing conflict involving Iran continued to drive global financial sentiment.

Oil prices rebounded after a brief dip, with Brent crude rising nearly 4% to $104.21 per barrel, while U.S. benchmark crude climbed to $97.61. The earlier decline in prices had helped lift U.S. markets on March 16, with the S&P 500 gaining 1%, the Dow Jones Industrial Average rising 0.8%, and the Nasdaq Composite advancing 1.2%, Japan Today writes.

In Asia, Japan’s Nikkei 225 edged down 0.09%, while South Korea’s Kospi jumped 1.6%. Hong Kong’s Hang Seng Index rose 0.2%, but China’s Shanghai Composite Index fell 0.6%.

Australia’s S&P/ASX 200 gained 0.4% after the Reserve Bank of Australia raised its benchmark interest rate to 4.1%, citing inflation pressures driven by higher fuel costs. Taiwan’s Taiex rose 1.5%, while India’s Sensex slipped 0.1%.

Markets remain highly sensitive to disruptions in the Strait of Hormuz, where Iran has nearly halted traffic, affecting around 20% of global oil trade. The risk of prolonged supply constraints has raised concerns about rising inflation and its impact on the global economy.

Investor sentiment remains fragile despite recent gains, with uncertainty over the duration and scope of the conflict weighing on outlooks.

By Sabina Mammadli