Story
Asian Energy Stocks Climb as Renewed US-Iran Tensions Lift Oil Prices
Summary
Energy producers in Asia saw their shares advance after a sharp rebound in crude oil prices, fueled by escalating rhetoric between the United States and Iran that revived concerns over potential supply disruptions.
Asian energy stocks rose on Thursday, tracking a significant overnight jump in crude oil prices as renewed geopolitical tensions in the Middle East sparked fears of supply disruptions.
Geopolitical Tensions Drive Oil Rebound
The rally in energy equities followed a sharp rebound in oil markets that ended a recent run of losses. According to Investing.com, Brent crude settled 3.9% higher at $103.08 a barrel, while West Texas Intermediate (WTI) gained 1.8% to $92.16.
The price surge was reportedly triggered by a statement from Iranian President Masoud Pezeshkian, who pledged that Tehran would not yield to U.S. pressure. This followed an earlier threat issued by U.S. President Donald Trump, reigniting investor concerns over the stability of Middle East oil supplies.
Energy Equities Rally Across Asia
The positive sentiment lifted major energy producers across the region. Key market movers included:
Ad- CNOOC's Hong Kong-listed shares, which rose 2.1%.
- Australian producers Santos and Woodside Energy, which gained 1.4% and 1.0% respectively.
- CNOOC's Shanghai-listed shares, which climbed 0.7%.
Japan's Inpex was an outlier, with its shares falling 1.3% despite the regional trend, the source material noted.
Broader Market Pressures
The gains in the energy sector came against a weaker backdrop on Wall Street, where higher oil prices and rising bond yields weighed on broader equities. The S&P 500 fell 0.8% and the Nasdaq dropped 1.1% on Wednesday, though the S&P 500 energy sector gained about 1%.
Pressure on the wider market was amplified as the 10-year Treasury yield reached its highest level since 2007. The move in yields was supported by data showing U.S. business activity accelerated in September, strengthening expectations that the Federal Reserve could implement another interest rate hike at its next meeting.
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