London: Global financial markets moved cautiously on Monday as rising oil prices and tensions in the Middle East made investors more careful about risk. Concerns about the safety of shipping through the Strait of Hormuz, one of the world’s most important oil routes, have increased uncertainty in markets.
Oil prices climbed as traders worried about possible disruptions to supply from the Gulf region. Brent crude rose to around 104 dollars a barrel, while United States crude was close to 100 dollars a barrel. Analysts say any threat to the Strait of Hormuz could quickly affect global energy supplies because a large share of the world’s oil passes through the narrow waterway.
Asian stock markets showed mixed movements. Japan’s Nikkei index slipped while some other regional markets made small gains. Investors are moving carefully as they wait for clearer signs about the geopolitical situation and the direction of the global economy.
The United States dollar remained strong as investors turned to safer assets during the uncertainty. Government bond yields also stayed elevated as markets reduced expectations for interest rate cuts in the United States this year. Higher oil prices could keep inflation pressures high and make central banks cautious about easing policy.
Attention is also focused on several major central bank meetings scheduled this week. The United States Federal Reserve, the Bank of England, the Bank of Japan and the Reserve Bank of Australia are all expected to review their interest rate policies. Most analysts believe central banks will keep rates steady for now as they assess inflation and global risks.
Economic data from China offered some positive signals for markets. Industrial production and retail sales showed stronger growth at the start of the year, suggesting that the world’s second largest economy is stabilising. However, challenges remain in China’s property sector and the labour market.
Market analysts say global investors will continue to watch developments in the Middle East, movements in oil prices and decisions by major central banks. These factors are expected to shape market direction in the coming weeks as uncertainty remains high in the global economy.