Asian Stocks Slide as US and Iran Exchange Strikes
Asian equity markets fell and oil prices climbed to over 92 dollars a barrel after the United States and Iran engaged in hostilities near the Strait of Hormuz. Investors are shifting focus toward upcoming US inflation data which may influence Federal Reserve interest rate decisions later this year.
Iran and the United States exchanged their largest hostilities since an April ceasefire on Wednesday, sending MSCI's broadest index of Asia-Pacific shares outside Japan down 3%. Crude prices rose as the conflict escalated near the Strait of Hormuz. The market shift comes as investors await U.S. inflation data that may influence the global interest rate outlook.
### Escalation Near the Strait of Hormuz The Iranian Revolutionary Guards launched attacks against a U.S. base in Jordan and 21 other Gulf targets on Wednesday. Iranian media described the move as retaliation for American strikes near the Strait of Hormuz. The U.S. military confirmed it targeted Iranian air defense and radar sites following the downing of an Apache helicopter on Tuesday.
