By Kimberley Kao
Oil futures and Asian stock benchmarks were mixed Friday, after President Trump said he would decide on whether the U.S. would join in strikes against Iran within two weeks.
Global markets have been rattled in recent days by the conflict between Iran and Israel, which has entered a second week. Investors fear the dispute could spill over into the region and disrupt oil supply.
Front-month WTI crude oil futures rose 0.7% to $75.67 per barrel, while front-month Brent crude oil futures were down 2.0% at $77.28.
Oil remains on edge and markets are pricing in some degree of uncertainty, short of expecting a blockade of the Strait of Hormuz, said Vivek Dhar, commodities analyst at Commonwealth Bank of Australia.
He noted that oil supply in the Middle East has yet to be disrupted by the Iran-Israel conflict.
"We believe the direct implication of increased tensions in the Middle East and the resulting rise in crude oil prices should be a weaker [yen]," Citi Research analysts said in a note.
However, the Citi analysts said oil prices are unlikely to remain high for long, and a correction will likely come towards the end of the year.
Stock benchmarks in Asia were mixed in Friday afternoon trading.
Hong Kong's Hang Seng Index rose 0.7% and India's Sensex advanced 0.9%. The Shanghai Composite Index was 0.1% lower.
Japan's Nikkei Stock Average and Australia's S&P/ASX 200 both closed 0.2% lower.
U.S. equity and bond markets were closed for the Juneteenth holiday on Thursday, though futures continued to trade. Contracts tied to the S&P 500 and Nasdaq fell about 0.2% on Friday afternoon in Asia. Futures tied to the Dow were 0.3% lower.
Questions around U.S. involvement remain a key uncertainty for markets going forward, MUFG senior currency analyst Michael Wan said in a note.
Bitcoin, viewed as a proxy for risk, fell 1.4%.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
06-20-25 0307ET
