Last Updated:June 18, 2025, 07:27 IST
Oil held near five-month highs as Asian stocks fell, tracking Wall Street losses amid rising fears of US involvement in the Middle East conflict
Crude Oil Price Today
Crude Oil Price Today: Oil prices hovered near five-month highs and Asian equities mirrored Wall Street’s decline as concerns intensified over possible US involvement in the escalating Middle East conflict. West Texas Intermediate (WTI) crude rose as much as 1.1% in Asian trading on Wednesday, after a sharp 4% jump the previous day. Meanwhile, MSCI’s Asia-Pacific equity index fell for a second straight session, tracking the S&P 500’s 0.8% drop on Tuesday.
Market sentiment weakened further following underwhelming US economic data. Retail sales declined for the second consecutive month, industrial output shrank, and homebuilder confidence dropped to its lowest level since December 2022. These indicators raised concerns about the resilience of the U.S. consumer and economy ahead of the Federal Reserve’s policy decision.
Geopolitical risks also weighed on markets. US President Donald Trump met his national security team to discuss the Israel-Iran conflict, raising speculation of deeper American involvement. Trump posted on social media demanding Iran’s “UNCONDITIONAL SURRENDER” and issued a veiled threat toward Iran’s Supreme Leader Ayatollah Ali Khamenei, saying the US knows his location but will not act “for now.”
“Rising tensions in the Middle East have increased global risk premiums, contributing to the pullback in equities,” noted Stephen Dover, Chief Market Strategist at Franklin Templeton Institute. However, he added that unless the conflict escalates significantly, oil prices and risk premiums may ease in the near term.
Meanwhile, investors continued to monitor US monetary policy. The Federal Reserve began its two-day meeting in Washington, with traders expecting no rate change in June or July. Market bets suggest nearly two quarter-point cuts by the end of 2025, with the first likely in October. The Fed’s updated economic projections and rate outlook will be closely watched.
A potential fourth consecutive pause in rate cuts could prompt a renewed backlash from Trump. Still, Fed officials have maintained that more clarity is needed from the White House on key policy fronts like tariffs, immigration, and taxes before monetary action can be considered. Israel’s recent strikes on Iranian nuclear facilities have only added further uncertainty.
Investors are becoming increasingly cautious. “While the buy-the-dip approach has worked well this year, we believe it’s time to reduce exposure to risk assets,” said Andrew Tyler, Head of Global Market Intelligence at JPMorgan. “Markets were already due for a pullback, regardless of the Middle East situation,” he added.
In the longer term, a shift in investor sentiment may be underway. Bank of America’s latest fund manager survey revealed that 54% of global asset managers now favor international stocks as the best-performing asset class over the next five years, compared to just 23% for US equities. Gold and bonds trailed far behind in preference.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
- First Published:
#Crude #Oil #Nears #5Month #High #Middle #East #Tensions #Escalate #Markets #News
