US-Israel-Iran War Fuels Oil Price Surge

A prolonged geopolitical conflict involving the United States, Israel, and Iran is casting a shadow over global markets. Iran's new Supreme Leader, Mojtaba Khamenei, has vowed to keep the Strait of Hormuz closed, intensifying concerns about oil supply and prices. Oil prices, including Brent Crude and West Texas Intermediate, remain near $100 per barrel, despite a temporary easing after the United States issued a license for Russian oil purchases. This conflict has spurred inflation fears, leading traders to significantly reduce their expectations for United States===Federal Reserve rate cuts this year. Asian stocks, as reflected by MSCI's broadest index of Asia-Pacific shares and Japan's Nikkei, have slumped for a second consecutive week. The United States===United States dollar has strengthened as a safe-haven currency, while the European Union===Euro and Japan===Japanese yen have weakened. Central banks, including the United States===Federal Reserve, Japan===Bank of Japan, European Union===European Central Bank, and United Kingdom===Bank of England, are expected to hold rates, with the Australia===Reserve Bank of Australia being an exception with an anticipated rate hike.