On October 16th, Brent crude oil traded close to US$ 105 per barrel, as tensions in the Gulf region escalated due to more reported attacks from Iran. The ongoing conflict between the US and Israel against Iran is now in its third week, contributing to the surge in oil prices. Brent crude, the international benchmark, rose by 1.6% to US$ 104.73, slightly down from an opening price above US$ 106. This represents an increase of over 40% since the onset of hostilities.

In the US market, the reference crude also saw a rise, climbing 1% to US$ 99.68 per barrel, marking a nearly 50% increase since the start of the conflict. The fluctuations in oil prices are closely monitored as they significantly impact global markets and economies. The situation is exacerbated by the geopolitical tension between the involved nations, leading to uncertainty in energy security and potential economic repercussions worldwide.

Stock markets around the region reacted variably, with the Tokyo-based Nikkei 225 index falling 0.4%, while Korea's Kospi index gained 0.6%. The Hang Seng index in Hong Kong also saw an increase of 1.1%, whereas Shanghai's composite index experienced a downturn of 0.7%. Such mixed results suggest that investor sentiment is influenced by the volatile situation in the oil market and broader geopolitical issues.