Japan's Nikkei set to plunge over 7% as oil breaches $100 mark Asia-Pacific markets were expected to experience significant declines on Monday, continuing the volatility seen in the previous week as oil prices surpassed $100 per barrel for the first time since 2022. The surge in oil prices was driven by major Middle Eastern producers, including Kuwait, Iran, and the United Arab Emirates, which reduced output following the closure of the Strait of Hormuz. This development sent Brent crude futures soaring 16.1% to $107.61, while U.S. West Texas Intermediate crude futures rose nearly 17.7% to $107.02. The sharp increase in oil prices also triggered a sharp reaction in global stock markets. Japan’s Nikkei 225 was projected to fall nearly 6% based on futures data, with the Chicago contract at 51,760 compared to the previous close of 55,620.84. The Osaka futures contract was even lower, at 51,660, indicating a drop of over 7% against the last closing price. Similarly, Hong Kong Hang Seng index futures were at 25,328, below the index’s previous close of 25,757.29. U.S. stock futures also declined sharply, with Dow Jones Industrial Average futures down over 800 points or 1.75%, while S&P 500 futures fell 1.59% and Nasdaq-100 futures dropped 1.6%. The broader impact of rising oil prices was evident across the Asia-Pacific region, with Australia’s S&P/ASX 200 falling 3.1% in early trade. The surge in oil prices coincided with a fire that broke out at the Shahran oil depot in Tehran, Iran, following U.S. and Israeli attacks. The incident left numerous fuel tankers and vehicles in the area damaged or unusable, further disrupting regional oil supply chains. U.S.#oil_prices #donald_trump #strait_of_hormuz #japan_nikkei #shahran_oil_depot
