TOKYO, Aug 3 — Global oil prices dropped sharply on Monday after US President Donald Trump called off a planned military strike on Iran to allow space for diplomatic negotiations, though easing energy costs provided little relief for regional stock markets.
In morning trade, Brent crude for October delivery plummeted nearly 7 percent to trade at just over US$83 per barrel (RM338.64). The price drop followed Trump’s decision to pause what he had previously described as the “biggest attack since World War II,” opting instead to pursue fresh talks aimed at resolving ongoing West Asia tensions.
Despite the pullback in energy prices, Asian equity markets faced heavy headwinds. South Korea’s benchmark KOSPI index dropped nearly 5 percent by 12:30 pm (0330 GMT), while Japan’s Nikkei 225 fell 1.7 percent. Market analysts attributed the broader weakness to mounting investor skepticism over the longevity of the artificial intelligence technology boom.
Elsewhere in East Asia, stock performance remained mixed. Hong Kong’s Hang Seng Index edged up 0.2 percent, whereas mainland China’s CSI 300 Index slipped approximately 0.8 percent.
US President Donald Trump said Saturday that he cancelled a planned military strike against Iran after Tehran and “other Middle Eastern countries” requested time to finalise the framework of a peace deal, saying Israel has joined the commitment.
In a post on his social media platform Truth Social, Trump claimed that the sides agreed to the “perimeters” of a potential deal that would include the “immediate, complete, and total” reopening of the Strait of Hormuz and an end to Iran’s nuclear threat.
–NMT
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