Kashmir Impulse Desk

New Delhi, July 13

Oil prices rose on Monday while global equity markets turned mixed after the United States launched fresh military strikes against Iran, stoking concerns that escalating hostilities could disrupt energy supplies through the Strait of Hormuz.

Brent crude, the international benchmark, rose as much as 5 percent in early trading before paring gains to trade up about 2.3 percent at $77.72 a barrel. U.S. West Texas Intermediate crude climbed around 2.1 percent to $72.92 a barrel.

The gains followed renewed military exchanges between Washington and Tehran that renewed fears over the security of the Strait of Hormuz, the narrow waterway through which around one-fifth of global seaborne oil supplies pass.

Investors have become increasingly sensitive to developments in the Gulf after recent attacks on commercial shipping and fresh US military action against Iran raised the prospect of prolonged disruption to one of the world’s most important energy corridors.

European equities traded cautiously. Germany’s DAX gained 0.2 percent, France’s CAC 40 edged 0.1 percent higher and Britain’s FTSE 100 added 0.1 percent in early trading.

U.S. stock futures were mixed, with contracts on the S&P 500 down 0.3 percent, Nasdaq futures losing 0.9 percent and Dow futures little changed.

Asian markets were weaker, reflecting investor caution over geopolitical risks and uncertainty surrounding the outlook for global growth.

Japan’s Nikkei 225 fell 1.9 percent, while South Korea’s benchmark index also declined sharply. Hong Kong’s Hang Seng bucked the broader trend with modest gains, while mainland China’s Shanghai Composite Index retreated.

Technology stocks came under pressure after recent strong gains driven by enthusiasm surrounding artificial intelligence. South Korean chipmaker SK Hynix fell sharply in Seoul after surging following its US listing, while Samsung Electronics also declined.

Analysts said investors remained concerned that valuations across the artificial intelligence sector had outpaced earnings prospects, leaving technology shares vulnerable to bouts of profit-taking.

Market participants are also awaiting quarterly earnings from major US banks this week for fresh clues on the health of the world’s largest economy and the outlook for corporate profits.

The renewed rise in crude prices has added to concerns that higher energy costs could complicate efforts by central banks, including the US Federal Reserve, to bring inflation under control. Persistently elevated oil prices could keep inflationary pressures alive, potentially delaying interest rate cuts and weighing on global economic growth.

In currency markets, the US dollar strengthened against the Japanese yen, while the euro edged higher against the dollar in early European trading.