Asian Stock Markets Face a Tough Week, Oil Prices Poised for Strong Gains Amid Middle East Conflict

Odaily News Oil prices retreated slightly on Friday, offering a brief respite to the battered global stock markets. However, Asian stocks are still set to record their largest weekly decline in six years, as there are few signs of easing in the Middle East conflict. News that the U.S. government is considering possible intervention in the futures market to curb oil price increases led to a drop in oil prices. Nevertheless, oil is still on track for its biggest weekly gain since the Russia-Ukraine conflict, with a cumulative increase of nearly 20% this week. Michael Brown, Senior Research Strategist at Pepperstone, stated that oil prices are consolidating temporarily, fluctuating around current levels, as a wait-and-see attitude is currently dominating. Dalip Singh, Chief Global Economist at PGIM Fixed Income, said that the market needs to assess a series of more extreme scenarios, but currently, there is very little reliable information about the likelihood of each extreme scenario occurring and its transition phases. (Jin10)