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Stock markets across the Asia-Pacific region mostly fell on Friday, mirroring the volatility seen on Wall Street as tensions in the Middle East and energy supply disruptions kept investors on edge.
The world’s largest gas facility in Qatar was attacked by Iran on Thursday. This assault came as a response to Israel’s strikes on Iran’s South Pars gas field, causing significant damage to energy supplies that are projected to last several years. According to QatarEnergy’s CEO, Saad al-Kaabi, the assaults have slashed 17% of Qatar’s LNG export capacity, which could impact the country for the next three to five years.
These retaliatory strikes targeting crucial oil and gas infrastructure throughout the Middle East have sent energy prices climbing sharply.
U.S. natural gas prices climbed 1.5%, reaching $3.112 per million British thermal units. Meanwhile, the Nymex RBOB gasoline futures for April delivery increased by nearly 1%, reaching $3.13, marking a peak not seen in nearly four years.
The tit-for-tat attacks on key oil and gas infrastructures across the Middle East sent energy prices soaring.
U.S. natural gas prices were last seen 1.5% higher, trading at $3.112 per million British thermal units. Front-month Nymex RBOB gasoline for April delivery, meanwhile, rose almost 1% to $3.13 and hit a nearly four-year high.
Oil prices retreated with the international benchmark Brent crude futures declining 2% to $106.45 per barrel. U.S. West Texas Intermediate futures dropped 1.56% to $94.64.
Saudi Arabia, one of the world’s largest oil producers, expects prices to soar past $180 a barrel if the supply disruption persists until late April, the Wall Street Journal reported, citing country officials.
The market fallout from the regional war has also extended to metals, with gold and silver shedding around 5% and 10%, respectively, before paring losses.
“The recent drop in gold spot price on high volume suggests panic selling,” Ed Yardeni, veteran investor and president of Yardeni Research, said in a note Friday, expecting a bottom in the recent sell-off soon.
Signaling efforts at calming concerns, U.S. President Donald Trump said that he was not deploying ground troops, and Israeli Prime Minister Benjamin Netanyahu stated that Israel would refrain from repeating attacks on Iranian energy facilities.
U.S.-aligned countries, including Britain, Canada, France, Germany and Japan issued a joint statement expressing “our readiness to contribute to appropriate efforts to ensure safe passage through the Strait” of Hormuz.
Australia’s S&P/ASX 200 closed 0.82% lower at 8,4284. Hong Kong’s Hang Seng index was down over 1% as of its last hour of trading while mainland China’s CSI 300 index revered earlier gains to close 0.35% lower at 4,567.
The Hang Seng tech index was last down 2.6%, with Xiaomi Corp as the largest dragger, falling more than 7%. The sell-off came a day after the company launched an updated electric vehicle model and announced plans to invest over $8.7 billion in artificial intelligence development over the next three years.
China’s central bank held its benchmark lending rates steady for a 10th month on Monday, with the five-year loan prime rates at 3.5% and the one-year rate at 3%.
South Korea’s blue-chip Kospi was the rare exception, rising 0.31% to end the session at 5,781.2 while the small-cap Kosdaq gained 1.58% to 1,161.52. Japan’s markets were closed for a public holiday.
Overnight on Wall Street, the Dow Jones Industrial Average declined 0.44% to 46,021.43 points. The S&P 500 fell 0.27% to end the session at 6,606.49 points, while the Nasdaq Composite slumped 0.28% to 22,090.69.
Futures tied to the 30-stock index were up 111 points, or 0.2%. S&P 500 futures gained roughly 0.3%, and Nasdaq-100 futures added 0.2%, after Wall Street fell overnight.
The Federal Reserve kept the interest rate unchanged earlier this week, with Chair Jerome Power cautioning that the economic outlook remains uncertain as hostilities continued in the Middle East.
