Thailand’s stock market is poised to open lower on Friday, April 19, 2024, following reports of an attack by Israel on Iran. This news has led to a surge in oil prices, with concerns arising about potential disruptions in Middle East oil supply.
Oil prices saw a significant jump of $3 per barrel on Friday in response to unconfirmed reports of explosions in Iran. Brent futures surged by $3.03 or 3.5%, reaching $90.14 a barrel, while U.S. West Texas Intermediate crude also rose by $3.03 or 3.7% to $85.76 per barrel.
ABC News later reported, citing a U.S. official, that the explosion in Iran was indeed caused by Israel. This development has captured the attention of investors who have been closely monitoring Israel’s response to the Iranian drone attacks on April 13. The geopolitical risk premium in oil prices had been easing throughout the week, with expectations that any Israeli retaliation against Iran would be tempered by international pressure.
In the broader Asian markets this morning, Nikkei in Japan fell by 2.87%, Kospi in South Korea dropped by 2.10%, Hang Seng Index in Hong Kong decreased by 1.05%, and ASX 200 in Australia declined by 1.35%. However, China’s SSEC managed a slight rise of 0.11%.
With the escalating tensions in the Middle East impacting oil prices and global markets, it is likely that Thailand’s stock market may open lower, mirroring the trend in other Asian markets. Investors will be closely monitoring developments in the region and assessing the potential implications on market dynamics.
