Investors react positively to de-escalation but remain on guard for possible new energy market disruptions
Asian economies began 2020 with a brighter outlook and hopes for reversing fortunes amid a truce in last year’s bruising US-China trade war. But the shock killing of top Iranian military commander Qassem Soleimani by a US drone strike abruptly checked sentiment as markets weighed the new unforeseen risk of a possible US-Iran war.
Global markets and oil prices have whipsawed in recent days on Iran’s retaliatory strike against American military bases in Iraq and follow-up conciliatory statements from US President Donald Trump and Iranian Foreign Minister Mohammad Javad Zarif, signaling, at least for now, that the hostilities will not spiral into full-blown war.
Asian stock markets fell hardest on the US’s initial attack, while oil briefly surged above US$70 a barrel for the first time since the attack on oil facilities in Saudi Arabia last September.
But markets rallied and oil prices eased to around $65 per barrel when Trump claimed on Wednesday that Iran was “standing down” after no Americans were harmed in the targeting of US installations, and Iran’s Foreign Ministry said the strikes “concluded” Tehran’s response to Soleimani’s assassination.
Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
Asian economies began 2020 with a brighter outlook and hopes for reversing fortunes amid a truce in last year’s bruising US-China trade war. But the shock killing of top Iranian military commander Qassem Soleimani by a US drone strike abruptly checked sentiment as markets weighed the new unforeseen risk of a possible US-Iran war.
Global markets and oil prices have whipsawed in recent days on Iran’s retaliatory strike against American military bases in Iraq and follow-up conciliatory statements from US President Donald Trump and Iranian Foreign Minister Mohammad Javad Zarif, signaling, at least for now, that the hostilities will not spiral into full-blown war.
Asian stock markets fell hardest on the US’s initial attack, while oil briefly surged above US$70 a barrel for the first time since the attack on oil facilities in Saudi Arabia last September.
But markets rallied and oil prices eased to around $65 per barrel when Trump claimed on Wednesday that Iran was “standing down” after no Americans were harmed in the targeting of US installations, and Iran’s Foreign Ministry said the strikes “concluded” Tehran’s response to Soleimani’s assassination.
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