Asia-Pacific markets are poised to open higher Friday after Iran and Oman announced plans to draft a protocol for monitoring transit through the Strait of Hormuz, sparking optimism for a partial reopening of the critical oil shipping route.
Hormuz Protocol Developments
- Iran and Oman are drafting a protocol to "monitor transit" through the Strait of Hormuz, as stated by Kazem Gharibabadi, Iran's deputy foreign minister, via state news agency IRNA.
- The protocol aims to supervise and coordinate tanker traffic through the strategic waterway, which is a major conduit for global oil supplies.
Oil Price Surge
- U.S. crude futures jumped nearly 12% to $112.06 per barrel, while global benchmark Brent rose approximately 8% to $109.24.
- The spot price for physical Brent crude cargoes soared to $141.36 on Thursday, marking the highest level since the 2008 financial crisis, according to S&P Global.
- Price increases reflect heightened market concerns over potential disruptions in oil supply from the region.
Regional Market Status
- Australian and Hong Kong markets remain closed for the Easter weekend, limiting immediate trading activity in these regions.
- Other Asia-Pacific markets are expected to react to the Hormuz news and oil price movements upon opening.