Oil prices experienced a sharp decline on Monday as Israel’s strikes on Iran did not target the country’s energy infrastructure. The yen also weakened to a three-month low following Japan’s ruling party’s poor performance in the elections.
Israel conducted air strikes on Iran’s military sites in response to previous missile attacks. Despite the tension, Iran downplayed the impact of the strikes, signaling a reluctance to escalate the conflict further. This led to a drop in oil prices, although they later recovered some losses.
Analysts noted that Israel’s strategic strikes and Iran’s measured response eased fears of a larger conflict. The possibility of peace talks and concerns about China’s economic stimulus affecting oil prices were also highlighted.
In currency markets, the yen depreciated against the dollar after Japan’s ruling coalition faced challenges in the election. The new Prime Minister’s snap election decision seemed to have backfired, causing uncertainty about the government’s fiscal policies and potential impacts on the Bank of Japan’s rate hikes.
The Asian markets reacted to these developments, with Tokyo leading gains and other markets following suit. Despite some fluctuations, most markets showed positive movements. The key figures at the time included updates on stock indices, currency exchange rates, and crude oil prices.
Overall, the geopolitical events, economic uncertainties, and political outcomes influenced market movements, providing a mix of challenges and opportunities for investors.