Asian share markets traded cautiously as doubts emerged over a fragile Gulf truce, sending oil prices higher. Investors remain concerned about prolonged inflationary pressures.
Concerns over the Strait of Hormuz, a critical oil artery, persist, with ongoing geopolitical tensions influencing market sentiment. U.S. crude futures climbed 3.1% to $97.33 a barrel, and Brent rose 2.1% to $96.86.
Major Asian indices, including Japan's Nikkei and China's blue chips, saw modest declines following earlier gains. U.S. and European futures also indicated a subdued trading session.
Inflationary pressures are expected to rise globally, with U.S. core prices projected to increase. Minutes from the Federal Reserve's last meeting revealed discussions on potential rate hikes to counter inflation, impacting Treasury yields and currency markets. The dollar saw some recovery against the euro and yen.