Key facts
- Oil prices rose as attacks on vessels in the Strait of Hormuz increased.
- Global stocks fell, with Tokyo and Hong Kong markets declining.
- Brent crude oil futures were up 0.9% to $101.48 a barrel.
- West Texas Intermediate crude futures were up 1.0% to $90.29 a barrel.
- UK Maritime Trade Operations reported nine attacks on vessels in the Strait of Hormuz this month.
Oil prices rose and global stock markets retreated on Tuesday as increased attacks on vessels in the Strait of Hormuz heightened geopolitical risk. Brent crude futures climbed 0.9% to $101.48 a barrel, and West Texas Intermediate gained 1.0% to $90.29.
UK Maritime Trade Operations reported nine attacks on vessels in the crucial waterway and the Persian Gulf so far this month, matching half of September's total. Meanwhile, Yemen's Houthis claimed an attack on Riyadh's main airport and denied reports that they had been pushed back by government forces.
Top oil officials have warned that global stockpiles are running low, diminishing governments' ability to absorb the impact of such crises. "For now, the market remains highly sensitive to headlines and geopolitical risk," said Chris Weston at Pepperstone.
Equities dropped after an upbeat start to the week, with Tokyo, Hong Kong, Singapore, Seoul, Wellington and Taipei all trading in the red. Traders did not follow their US counterparts, who had pushed the Nasdaq and S&P 500 to record highs, partly driven by gains in chip titan Nvidia, whose market capitalization neared $5.7 trillion. Investors were also reportedly buoyed by a Financial Times report that SpaceX was seeking to raise $40 billion to purchase Nvidia chips.