Global oil markets were rattled on Tuesday after US President Donald Trump warned Iran of the “consequences of not making a deal” ahead of scheduled talks in Geneva, sending crude prices higher amid thin holiday trading.
West Texas Intermediate (WTI) crude gained 0.8 per cent to $63.38 per barrel, while Brent North Sea crude eased slightly to $68.23 per barrel, following earlier spikes of more than one per cent for WTI.
Trump’s comments continue a pattern of US pressure on Tehran, including threats of military action over Iran’s handling of anti-government protests and its nuclear programme.
Markets were largely quiet due to the Lunar New Year holiday across key Asian exchanges - including Shanghai, Hong Kong, Taipei, Seoul, and Singapore - while US markets were closed on Monday for Presidents’ Day.
Precious metals also slipped, with gold falling below $5,000 per ounce and silver down three per cent.
Tokyo’s Nikkei 225 ended down 0.4 per cent at 56,566.49 after weak Q4 economic growth data. Analysts at Monex noted that with the US market closed, Japanese trading was expected to be subdued, though a weaker yen at 152.92 per dollar could provide support to export-oriented stocks.
Sydney’s S&P/ASX 200 rose 0.2 per cent, buoyed by strong results from BHP, the world’s largest copper producer, whose half-year net profit surged amid global copper demand. Bangkok climbed 0.5 per cent following the post-election rally for the conservative Bhumjaithai Party. Mumbai and Manila also rose, while Wellington retreated 0.5 per cent.
Investors are also watching developments in artificial intelligence as global tech executives gather at the AI Impact Summit in New Delhi. The five-day summit, billed as the largest yet, aims to establish a “shared roadmap for global AI governance and collaboration.” Key speakers include US Federal Reserve Governor Michael Barr and San Francisco Fed President Mary Daly, reflecting both the opportunities and risks of rapidly advancing AI technologies.
Markets at 0700 GMT:
Tokyo – Nikkei 225: DOWN 0.4% at 56,566.49
Hong Kong – Hang Seng Index: closed
Shanghai – Composite: closed
Dollar/yen: DOWN to 152.92 from 153.48
Euro/dollar: DOWN to $1.1844 from $1.1854
Pound/dollar: DOWN to $1.3613 from $1.3630
Euro/pound: UP to 87.01 pence from 86.98 pence
WTI crude: UP 0.8% at $63.38 per barrel
Brent crude: DOWN 0.6% at $68.23 per barrel
New York – Dow: closed
London – FTSE 100: UP 0.3% at 10,473.69
The combination of geopolitical tension and holiday-thinned trading has created volatility in oil and commodities markets, keeping investors closely focused on energy, technology, and macroeconomic developments in the coming days.
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