Rising oil prices above $85 reignite inflation concerns, dragging Asian equities lower following Wall Street losses.
Asian stock markets fell Tuesday, mirroring Wall Street’s overnight decline as hopes for a Middle East peace deal dimmed. Oil prices climbed above $85, stoking fears of renewed inflationary pressures and weighing on investor sentiment.
U.S. index futures extended losses after major averages opened lower, reflecting broader risk aversion. The sell-off follows a period of relative stability, with markets previously pricing in easing inflation and potential rate cuts.
The move highlights sensitivity to energy costs, which could delay monetary policy easing if inflation reaccelerates.