Oil prices rose in Asian trading on Wednesday after U.S. Central Command reported that American forces had defeated Iranian ballistic missiles and drones, and carried out self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East. Iran had launched several ballistic missiles toward its neighbors in the region, according to Central Command, which stated that all failed to hit their intended targets: two Iranian missiles fired at Kuwait fell short or broke apart en route, while three missiles launched at Bahrain were intercepted by U.S. and Bahrain air defense forces.
The exchange of attacks could complicate continuing U.S.-Iran negotiations to end the conflict and risks reopening the Strait of Hormuz, a critical waterway through which about one-fifth of the world’s oil is typically transported. “Peace talks between the U.S. and Iran struggled to stay on track,” ANZ Research analysts said in a research report. The analysts added that there are “concerns that Iran’s proxy militant groups may turn to disrupting oil supplies in the Red Sea,” which would be “a significant hit to the oil market, as Saudi Arabia has been able to send around 5 million barrels a day of oil via this route.”
Front-month West Texas Intermediate crude oil futures were 1.2% higher at $94.86 a barrel, and front-month Brent crude oil futures were 1.0% higher at $96.98 a barrel, according to ICE data.
Meanwhile, most equity markets across Asia rose after new developments in artificial intelligence lifted the S&P 500 to a ninth straight day of gains on Tuesday. Hewlett Packard Enterprise shares soared after the server company described rampant artificial-intelligence demand, and Marvell Technology posted its best day on record after Nvidia’s President and CEO Jensen Huang said it could become the next $1 trillion company.
Japan’s Nikkei Stock Average rose 2.2% to 68,174.67, breaking past the 68,000 level for the first time. Chip-related stocks led gains, with Tokyo Electron rising 10% and Screen Holdings climbing 15%. Taiwan’s benchmark Taiex advanced 2.0%, and Singapore’s FTSE Straits Times Index added 0.7%. Hong Kong’s Hang Seng Index fell 1.1%. South Korea’s markets were closed for a public holiday.