Mideast Conflict Drives Oil Near $80, Forcing Asian Central Banks to Tackle Inflation

Oil prices surged, with Brent crude nearing $80 and U.S. crude around $73, driven by fears of supply disruptions due to facility shutdowns and a substantial drop in shipping through the Strait of Hormuz. This geopolitical tension also led to a rally in safe-haven assets like gold and U.S. Treasury bonds, while global equity indexes experienced pressure, though U.S. stocks, particularly in energy, defense, and technology sectors, managed to rebound from early declines.

The dollar also strengthened against major currencies. Concerns about potential inflation spikes and the duration of the conflict are key factors influencing investor sentiment and market movements.