Key facts
- Asian markets fell due to fears of high inflation and concerns over earnings projections.
- A Singapore-flagged commercial vessel was attacked by Iran's Revolutionary Guards with a drone in the Strait of Hormuz.
- The vessel's bridge sustained damage, but no casualties or environmental impacts were reported.
- The security threat in the Strait of Hormuz has revived concerns and impacted shipping routes.
- London's FTSE 100 is anticipated to open lower as a result of these developments.
Asian equity markets experienced a downturn as Apple's announcement of price increases, attributed to memory chip shortages, fueled global inflation fears and raised questions about the earnings prospects of companies reliant on such components. Concurrently, the security situation in the Strait of Hormuz has become a point of concern following a drone attack by Iran's Revolutionary Guards on a Singapore-flagged commercial vessel. While no casualties or environmental damage were reported, the ship's bridge was damaged, leading commercial vessels to reroute and impacting hopes for US-Iran peace talks. This heightened security threat is expected to weigh on London's FTSE 100, with futures indicating a lower opening. Brent crude, the international oil benchmark, has fallen back to pre-war levels at $74 per barrel and is on track for its third consecutive weekly decline.