Iran has warned global markets to prepare for oil at US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...
KUALA LUMPUR (Aug 17): The FBM KLCI rose 2.56 points or 0.1% on positive market sentiment amid ebbing US-North Korea geopolitical tensions and as declining US interest rate hike expectation supported Asian markets.
At 5pm, the KLCI closed at 1,776.31 points after index-linked Hong Leong Financial Group Bhd (HLFG) shares posted sharp gains in the final trading minutes. HLFG rose eight sen to RM17.02.
Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said although the KLCI registered modest gains,"the positive local market sentiment showed signs of catching up with regional markets elsewhere in the region".
Across Bursa Malaysia, gainers outstripped decliners at 461 against 315 respectively. A total of 1.8 billion shares worth RM1.88 billion were traded.
Top gainers included Hengyuan Refining Co Bhd and Lotte Chemical Titan Holding Bhd.
Malaysian shares rose ahead of Bank Negara Malaysia's announcement tomorrow on the country's 2017 second quarter gross domestic product (GDP) figures.
In a note, Credit Suisse said its second quarter Malaysia GDP on-year growth estimate at 6% was above consensus estimate at 5.6%.
Today, slower US rate hike expectation boded well for Asian markets in anticipation of demand for higher-yielding regional assets.
Reuters reported that Asian stocks edged higher on Thursday as tensions between the United States and North Korea came off the boil, while the Federal Reserve's concerns about weak US inflation weighed on the dollar.
It was reported that minutes from the Fed's July meeting released on Wednesday showed the central bank grew more wary about recent weak inflation, with some policymakers wanting to halt interest rate hikes until it was clear the trend was temporary. Money market futures are now pricing in about a 40 percent chance the Fed will raise rates by December, compared to just under 50 percent before the Fed's minutes.
Source: The Edge
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