Crude oil extended gains into a second consecutive session, with Brent climbing above $85 per barrel as escalating tensions between the United States and Iran reinvigorated concerns about inflation pressures. The geopolitical friction has reignited worries about potential supply disruptions, prompting investors to reassess the likelihood of additional interest-rate increases from the Federal Reserve.
Market participants are increasingly pricing in the probability of further rate hikes ahead of an anticipated consumer price index report, which could provide crucial inflation signals for policymakers. The elevated energy prices are adding to the calculus as investors weigh the path forward for monetary policy.
In Asian equity markets, equities posted modest gains despite turbulent trading in semiconductor stocks throughout the session. The mixed performance in the technology sector underscores ongoing uncertainty as investors position ahead of key economic data releases.