Oil prices surged after the collapse of talks between the US and Iran. West Texas Intermediate (WTI) crude jumped 8% to $104.23 per barrel, while Brent crude rose 6.71% to $102 per barrel. Global stock markets reacted to the news with heightened geopolitical tensions. Japan's Nikkei 225 index fell by 0.8%, and the Topix index dropped by 0.3%. South Korea's Kospi index lost 0.73%, while the Kosdaq index for small companies rose by 0.42%, recovering from early losses. In Australia, the S&P/ASX 200 index declined by 0.4%. China's CSI300 index remained stable, while Hong Kong's Hang Seng index fell by 0.8%. According to The Wall Street Journal, US President Donald Trump is considering resuming airstrikes on Iran. Trump approved a two-week ceasefire last Tuesday in exchange for Tehran allowing ships to pass through the strait. He had previously threatened to bomb all bridges and power plants in Iran. US futures also fell. Dow Jones Industrial Average futures dropped by 517 points (1.1%), S&P 500 futures lost 1.1%, and Nasdaq 100 futures fell by 1.2%. The failure of talks in Islamabad renewed fears that the US-Iran war would drag on, leading to higher oil prices that will continue to pressure the global economy.
