Sell-offs sweep Hong Kong and Asian markets as gold, oil rise on Iran war
Crude oil jumps as much as 14 per cent to the highest level since January 2025, while gold gains 2.5 per cent on haven demand
The risk-averse mood adds to the uncertainty and volatility surrounding global equities, which have recently been rattled by fears of displacement by artificial intelligence after trading at elevated levels.
Iran virtually shut the Strait of Hormuz, through which about a fifth of the world’s shipments of oil and gas flow, after the war broke out. Strained energy supply will fuel a resurgence in inflation globally and could cloud the outlook for economic growth.
“We expect equities to move lower in the immediate aftermath of these events [as] most of the effect is likely to be felt through higher oil prices,” said Benjamin Jones, global head of research at US asset-management firm Invesco. “Many emerging markets that rely on foreign energy sources could be at risk. We also note that many Asian economies rely on imports from the Middle East, which we think may result in downward pressure on local assets.”
Brent crude surged as much as 14 per cent to US$82.37 a barrel, on course for its highest level since January 2025, while gold rose 2.5 per cent to US$5,408.33 an ounce, bolstering its status as a haven asset.
The US and Israel bombed targets across Iran on Saturday, while the Islamic nation retaliated with strikes on American military bases and cities in the Middle East and Israel. Iran’s supreme leader Ayatollah Ali Khamenei was killed in the assault.
