A sharp drop in global oil prices has spread to Asian markets. Alongside oil, major regional stock exchanges saw positive shifts on news of easing geopolitical tensions.
On Monday, May 25, Brent crude fell nearly 5 percent in international Asian trading to $98.36 a barrel. It later declined further to $97.90, about 5.5 percent below the previous day’s level.
West Texas Intermediate crude also fell 5.8 percent to $90.99 a barrel. U.S. and U.K. energy and financial markets were closed Monday for a public holiday.
Positive progress has been made on key elements of a possible peace deal with Iran. President Donald Trump said Saturday that a detailed announcement could be made soon.
Trump said that as part of the possible agreement, the Strait of Hormuz, closed since Feb. 28, would be fully reopened. About one-fifth of the world’s crude oil and liquefied natural gas (LNG) passes through this important sea lane.
The prospect of reopening the Strait of Hormuz drove a strong rally in Asian stock markets. Japan’s benchmark Nikkei 225 rose nearly 2.5 percent and crossed 65,000 points for the first time in its history.
Analysts said industrialized economies such as Japan and South Korea depend heavily on Persian Gulf energy, leaving them most exposed to instability in the region. News of a possible peace deal has fueled new optimism among investors.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report