HONG KONG, China: Oil prices took centre stage in Asian trading Tuesday after US President Donald Trump intensified warnings toward Iran, injecting volatility into otherwise quiet markets subdued by public holidays across Asia and the United States.
West Texas Intermediate rose more than one percent to trade near $64 per barrel, while Brent North Sea Crude slipped slightly to just under $69.
The movement followed Trump’s warning to Tehran about the “consequences of not making a deal” ahead of upcoming talks between Washington and Iranian officials in Geneva.
The US president has repeatedly threatened military action against Iran — initially in response to its crackdown on anti-government protests and more recently over concerns surrounding its nuclear programme.
The remarks rippled through energy markets at the start of a subdued trading week. Major financial hubs, including Shanghai, Hong Kong, Taipei, Seoul, and Singapore, remained closed for the extended Lunar New Year holiday, dampening broader regional activity.
According to AFP, in the United States, markets were preparing to reopen on Tuesday after observing Monday’s Presidents’ Day holiday. Precious metals also reacted, with gold falling below $5,000 per ounce and silver sliding four percent.
In Tokyo, the Nikkei 225 fell 0.8 percent to 56,328.98 after data showed that Japan — the world’s fourth-largest economy — recorded weaker-than-expected growth in the fourth quarter.
Brokerage house Monex said in a note that with US markets closed, Japanese equities were likely to see limited movement due to a lack of fresh catalysts.
“In the foreign exchange market, the dollar/yen exchange rate was trading in the mid-153 yen range, a weaker yen than the previous day, which is likely to support export-related stocks,” the firm said.
Investors were also monitoring remarks by Japanese Finance Minister Satsuki Katayama at the Digital Space Conference, though analysts suggested the appearance was unlikely to significantly sway equity markets.
Elsewhere in the Asia-Pacific region, Sydney gained 0.5 percent after mining giant BHP — the world’s largest copper producer — reported a rise in half-year net profit, buoyed by strong demand for copper amid growing global electricity needs.
Bangkok rose 0.5 percent, shrugging off weak economic growth figures released Monday. The Thai market continued to ride a post-election boost following the conservative Bhumjaithai Party’s surprise victory in the February 8 polls.
Mumbai, Jakarta, and Manila also posted gains, while Wellington slipped 0.5 percent and Kuala Lumpur was little changed.
Beyond energy and equities, traders were turning their attention to developments in artificial intelligence, as global leaders and technology executives convened at the AI Impact Summit in New Delhi.
The five-day gathering, described as its largest edition yet, aims to outline a shared roadmap for global AI governance and collaboration.
In the United States, Federal Reserve Governor Michael Barr and San Francisco Fed President Mary Daly were scheduled to speak on artificial intelligence, according to Bloomberg News.
The AI sector has been a major driver of market enthusiasm in recent years, with generative AI demand boosting profits across technology firms. However, concerns continue to mount regarding potential societal and environmental risks posed by rapid AI expansion.
Key market figures at around 0230 GMT:
Tokyo – Nikkei 225: DOWN 0.8 percent at 56,328.98
Hong Kong – Hang Seng Index: Closed for holiday
Shanghai – Composite: Closed for holiday
Dollar/yen: Up at 153.18 yen from 153.48 yen
Euro/dollar: Down at $1.1846 from $1.1854
Pound/dollar: Down at $1.3619 from $1.3630
Euro/pound: Flat at 86.98 pence
West Texas Intermediate: Up 1.2 percent at $63.66 per barrel
Brent North Sea Crude: Down 0.3 percent at $68.48 per barrel
New York – Dow: Closed for holiday
London – FTSE 100: Up 0.3 percent at 10,473.69 (close).
