MANILA, Philippines (AP) — Oil prices rose and Asian markets showed mixed results on Friday as investors waited to see whether the United States will take part in the ongoing conflict between Israel and Iran.
U.S. stock futures dipped slightly after markets were closed Thursday for the Juneteenth holiday.
U.S. benchmark crude gained 15 cents to reach $73.65 a barrel. Brent crude, the global standard, rose 19 cents to $76.89 per barrel.
Oil prices have been unstable amid growing concerns that the Israel-Iran conflict could threaten global oil supply. Iran is a key oil producer and controls the Strait of Hormuz, a vital route for global crude shipments.
Investor caution grew after the White House said former President Donald Trump may decide within two weeks whether to order a strike on Israel. However, he still considers diplomacy a possible solution, said Anderson Alves, a trader at ActivTrades.
Trump’s trade policies also remain a source of uncertainty for markets.
Japan’s Nikkei 225 index rose 0.1% to 38,538.14 after data showed core inflation — excluding food prices — increased to 3.7% in May. This rise adds pressure on Prime Minister Shigeru Ishiba’s administration and the Bank of Japan.
“Core inflation in Japan was stronger than expected,” said Min Joo Kang of ING Economics. “Still, the Bank of Japan is more focused on the threat U.S. tariffs pose to wage growth and inflation.”
Hong Kong’s Hang Seng index climbed 1.2% to 23,504.59. The Shanghai Composite rebounded from earlier losses to gain 0.1%, closing at 3,364.83. China’s central bank kept its 1-year and 5-year loan prime rates unchanged, as widely expected.
Australia’s S&P/ASX 200 dropped 0.3% to 8,500.40, while South Korea’s Kospi rose 1.2% to 3,014.05.
“Investor sentiment remains cautious due to ongoing Iran-Israel tensions,” Mizuho Bank said in a report.
On Thursday, the Bank of England kept its key interest rate at 4.25%, its lowest in two years, citing concerns that the Middle East conflict could intensify.
In currency trading, the U.S. dollar slipped to 145.28 Japanese yen from 145.46 yen. The euro rose to $1.1530 from $1.1498.
