World oil prices continue to soar as the Middle East crisis returns to the focus of attention, with US forces launching new attacks on Iran after three ships were attacked in the Strait of Hormuz on July 8.
Both main crude oil contracts increased by more than 2% in the day, after increasing similarly the day before, bringing prices to their highest level in two weeks. Mr. Andreas Krieg - an expert at King's College London - said that Iran is determined to uphold the requirement to collect fees for using the strait, which Washington declared unacceptable.
This sudden development has raised concerns about peace talks between the two sides, as they seek to end the conflict and completely reopen the vital sea route.
This makes the trading atmosphere even more gloomy amidst technology stocks being sold off due to concerns about overvaluation and the time when companies are starting to profit from huge investments in the AI sector in recent years.
The US Central Command (CENTCOM) said that "strong" attacks on Iran are in response to ship attacks passing through the strait, and will "impose a heavy price on targeting and attacking commercial ships".
Three ships were attacked near Oman, a country that has proposed a temporary transshipment corridor along its coast, an initiative opposed by Tehran as it seeks to impose fees on ships using the sea route.
The Iranian Foreign Ministry accused the US of repeatedly violating the memorandum of understanding agreed upon by the two sides, and threatened to "take drastic measures to protect its national interests and security". The attacks took place shortly after Washington withdrew its temporary sanctions immunity status on Iranian oil.
The stock market also suffered losses when new US-Iran tensions arose at the same time as the retreat of the technology sector, which has pushed markets to many record highs in the past two years.
Seoul's Kospi index, which is the growth model of Asia, has fallen more than 1% and lost more than 20% since hitting a record high last month. Samsung continued to be affected after the previous decline, despite forecasts that Q2 operating profits would skyrocket by more than 1,800% thanks to strong demand for AI chips. Tokyo, Shanghai, Sydney, Singapore, Wellington markets also recorded declines, while Hong Kong (China) increased by more than 1%.
The USD continues to appreciate against other currencies as the prospect of supply from the Middle East is further affected, raising concerns that inflation may remain at a higher level longer than expected, putting pressure on the Federal Reserve to raise interest rates.
Some key oil price indexes in the morning of July 8: WTI oil increased by 2.3% to 72.03 USD/barrel; Brent North Sea oil increased by 2.2% to 75.76 USD/barrel; Nikkei 225 index in Tokyo decreased by 0.6% to 67. 827.89 points; Hang Seng index in Hong Kong (China) increased by 1.9% to 23,936.6 points; Composite index in Shanghai decreased by 0.2% to 3,980.82 points; Kospi index in Seoul decreased by 1.5% to 7,540.18 points.
