Oil Prices Rise Amid Widening Middle East Conflict

Oil prices climbed and Asian equities generally fell as the expanding Middle East conflict raised concerns about disruptions to crude supplies and shipping through the Strait of Hormuz and Bab al-Mandeb. Saudi Arabia’s shutdown of a major pipeline and attacks on regional infrastructure heightened supply fears, while stalled diplomacy involving Iran and Gulf states and continuing fighting in Yemen added to market uncertainty. Brent crude rose above $106 a barrel and West Texas Intermediate topped $102, raising concerns that sustained energy costs could broaden inflationary pressure and weigh on global financial markets. The turmoil also strengthened the U.S. dollar as investors sought safety and increased expectations that the Federal Reserve would raise interest rates.