Oil prices fluctuated Tuesday following renewed threats from U.S. President Donald Trump targeting Iran, providing a focal point for markets otherwise subdued by extended holidays in major Asian financial centers.
West Texas Intermediate crude rose 0.5 percent to settle at $63.19 per barrel, after earlier gaining more than one percent to near $64. Brent North Sea crude edged down 0.9 percent to $68.05 per barrel. The moves followed warnings from Trump that Iran would face “consequences of not making a deal” ahead of planned talks between Washington and Tehran. The president has previously threatened military action over Iran’s crackdown on protests and its nuclear programme.
The geopolitical rhetoric influenced trading during a quiet session. Major markets in Shanghai, Hong Kong, Seoul, Taipei, and Singapore remained closed for the Lunar New Year holiday. U.S. exchanges were also shut Monday for Presidents’ Day and reopened later Tuesday.
In other markets, Japan’s Nikkei 225 closed 0.4 percent lower at 56,566.49 after data showed weaker-than-expected fourth-quarter economic growth. “With the U.S. market closed, the Japanese market is expected to start today with little movement due to a lack of material,” noted Monex, adding that a weaker yen trading near 153.08 against the dollar could support export stocks.
European bourses opened mixed. London’s FTSE 100 rose 0.3 percent to 10,507.99, while Frankfurt’s DAX was slightly lower and Paris saw gains. Currency markets saw the euro and pound weaken against the dollar. Gold prices declined, trading below $2,000 per ounce.
In the Asia-Pacific region, Sydney added 0.2 percent after mining giant BHP reported higher half-year profits, buoyed by copper demand. Bangkok rose 0.9 percent following a conservative party’s election victory, while Wellington and Manila slipped.
Market attention will also turn to the AI Impact Summit in New Delhi, a five-day event aiming to outline a global governance roadmap for artificial intelligence. U.S. Federal Reserve officials are scheduled to discuss AI’s risks and opportunities, even as generative AI continues to drive tech sector profits amid growing societal and environmental concerns.
The thin holiday trading amplified reactions to geopolitical headlines, underscoring the persistent sensitivity of energy markets to Middle East tensions.
