Oil prices jump amid war tensions, Asian stock markets under pressure

On Monday (July 13), the price of Brent crude rose 4.1 percent in the international market to reach $79.11 per barrel. At the same time, the price of US WTI crude also rose 4.1 percent to $74.37 per barrel.

According to market analysts, volatility in the energy market emerged following the intensification of conflict in the Gulf region and Iran's renewed demand to close the Strait of Hormuz. This also impacted stock, currency, and bond markets.

Amid geopolitical uncertainty, investors are turning to safe-haven assets. As a result, the value of the US dollar and the yields on US government bonds have increased. At the same time, concerns have strengthened that if inflation risks rise, the US central bank, the Federal Reserve, might increase interest rates again.

Meanwhile, the US June inflation data will be published on Tuesday. On the same day, the new Fed Chairman Kevin Warsh will address the US Congress for the first time. Global markets are now focused on the US, centered around these two events.

Amid the tensions in the Strait of Hormuz, US officials said that about 20 ships have been escorted through the strait in the last 24 hours. However, according to data from various ship-tracking agencies, traffic on this waterway has not yet fully normalized.

A busy week also awaits the corporate sector. From Tuesday, major US banks will start publishing their quarterly financial reports. Following this, multinational companies including Netflix and General Electric will also release their earnings data. Analysts hope that good financial results could somewhat ease market concerns.

According to analysts at investment bank Citi, the long-term growth potential in the artificial intelligence (AI) sector remains strong. However, this positive impact was not seen in the stock market at the start of trading on Monday.

On this day, S&P 500 and Nasdaq futures were lower. Futures for major European indices also fell. Japan's Nikkei index faced a major decline for the second consecutive week. At the same time, the MSCI index for the Asia-Pacific region excluding Japan was also in a downward position.

Mukesh Sahdev, chief oil analyst at Australian research firm XAnalysts, believes that with geopolitical uncertainty continuing, crude oil prices could remain above $70 per barrel throughout August and September.

On the other hand, Fabien Yip, market analyst at IG Group, says that despite the current situation, the possibility of international oil prices crossing $100 per barrel again is currently low.

The impact of rising oil prices has also been felt in the bond market. The yield on the US two-year Treasury bond has reached its highest level since 2025. On the other hand, due to high bond yields, demand for gold in the international market has decreased somewhat. The price of gold fell more than 1 percent to $4,076 per ounce.