Oil nears €86 as Iran war tightens supply, Asian markets mixed

Brent crude surged to around €86 per barrel ($99.48) as the US-Iran war disrupts Strait of Hormuz traffic, with Asian shares mixed. European indices opened flat to slightly lower, as investors weigh prolonged conflict and its inflationary impact on the global economy.

Bottom line — Brent crude at €86 threatens to keep inflation above central bank targets, complicating rate decisions for the ECB and Fed.

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• Brent crude rose 1.6% to $99.48 per barrel (€85.5) on Wednesday, per AP reports, after a brief dip earlier in the week.
• The Strait of Hormuz remains effectively closed, with Iran nearly halting traffic where a fifth of the world's oil typically sails, according to AP.
• Stephen Innes of SPI Asset Management said the panic is 'dialled down a notch' as crude slipped off the boil, but the risk of prolonged closure keeps markets on edge.
• Japan's Nikkei 225 lost 0.2% to 65,142.78, while South Korea's Kospi gained 1.4% to 7,051.64, per AP.
• European indices were little changed: France's CAC 40 inched up less than 0.1%, Germany's DAX shed 0.2%, and Britain's FTSE 100 declined 0.2%, according to AP.
• The US Federal Reserve meets next week, with traders not expecting a rate cut, while the Bank of Japan is expected to raise rates, per AP.

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