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Oil prices have risen by more than 3% after fresh strikes from the US and Iran tested a fragile truce.
Brent crude climbed $2.49 to $76.65 a barrel, up 3.4%.
The US military carried out a new wave of strikes against Iran on Tuesday and revoked a licence allowing Tehran to sell oil after three tankers were hit by projectiles in the strait of Hormuz, putting more pressure on the ceasefire agreed weeks ago to negotiate a permanent deal to end the war.
NATO secretary general Mark Rutte said the US strikes were “absolutely necessary,” talking to reporters before a summit of NATO leaders in Ankara.
At least four oil and gas tankers have turned back after trying to transit the strait, a key shipping passage, according to ship-tracking data.
However, at least two crude oil tankers managed to leave the strait, each carrying 2m barrels of oil.
Asian stock markets fell in volatile trading, with Samsung Electronics shares sliding for a second day, despite the company reporting better-than-expected profits. Samsung slumped 6.8%.
The Nikkei in Tokyo fell 1.6% while the Kospi index in Seoul tumbled nearly 5%. Hong Kong’s Hang Seng bucked the trend, rising 3%.
Sara Perring, head of APAC cash equity sales at JPMorgan, told Reuters
Short-term profit taking on long-term winners, particularly the AI theme, appears to be a global dynamic… we sh ould expect elevvated volatility and continued foreign sellingin orea equities in the near term.
The Kospi index had rallied 192% over the last 12 months, and has now fallen about 20% from its peak, noted Jefferies analyst Mohit Kumar.
The market action shows the crowded nature of the semiconductor bet but also that the sector would need to keep delivering on solid earnings to maintain the sharp rally of recent months.
7pm BST: US Federal Reserve minutes
