By Ronnie Harui and Kimberley Kao
Oil prices rose and Asian equities were mixed as investors weighed the risks of a prolonged Middle East conflict even as President Trump pursued a plan to reopen the Strait of Hormuz for shipping.
Front-month West Texas Intermediate crude oil futures were recently 2.0% higher at $100.70 a barrel, after hitting $102.44 a barrel earlier, the highest intraday level since March 9, according to ICE data. Front-month Brent crude oil futures climbed 2.9% to $106.10 a barrel.
The Trump administration intends to announce as soon as this week that multiple countries have agreed to form a coalition that will escort ships through the Strait of Hormuz, The Wall Street Journal reported, citing U.S. officials. The U.S. and potential coalition countries are still discussing whether the operations would begin before or after the Middle East conflict ends. The White House declined to comment on the expected announcement, which could shift depending on battlefield conditions.
"We are not entirely convinced that these steps the Trump administration are taking now, including getting allies to help, will meaningfully help," MUFG Bank's Michael Wan said in a note.
"From Iran's perspective, it makes absolute sense to press for more advantage, including through inflicting more pain on the global and U.S. economy, including through higher oil prices, if only to establish deterrence on U.S. and Israel over the medium-term through asymmetric warfare," the senior currency analyst said.
Asian markets were mixed as investors continued to assess the impact of the Middle East conflict.
China's Shanghai Composite closed 0.3% lower, while Taiwan's Taiex was down 0.2%. In Japan, the Nikkei Stock Average finished 0.1% lower, dragged by auto, and electronics stocks.
Elsewhere, South Korea's Kospi ended 1.1% higher, snapping a two-session losing streak, boosted by chip stocks, while the Hang Seng Index rose 1.45%.
"Despite pessimistic sentiment and oil risks, equities remain resilient as investors assume escalation will fade and oil prices will normalize," said CGS International analyst Lim Siew Khee.
"The longer the Strait of Hormuz remains effectively closed, the greater the risk of economic disruption and market stress. Complacency may be misplaced," Lim said.
Early Monday, United Arab Emirates authorities said a drone-related incident caused a fire in one of the fuel tanks near Dubai International Airport, disrupting flight operations. It has confirmed the gradual resumption of some flights.
Saudi Arabia said it has intercepted 61 drones over its territory since midnight. The country's Defense Ministry provided no additional details about the drones' origin or intended targets.
Meanwhile, U.S. forces in recent days struck military targets on Kharg Island, home to Iran's key oil-export terminal, although they didn't damage the island's energy facilities.
Even though the U.S. strikes on Kharg Island seem to have targeted military infrastructure rather than energy infrastructure, "it still poses supply risks, particularly given that Iranian oil is about the only oil moving through the Strait of Hormuz," ING's commodities strategy team said in a note.
"Targeting Iranian oil infrastructure only increases the risk that Iran will further target regional energy infrastructure," ING said. "This would potentially prolong the recovery of oil flows, even if the Strait of Hormuz reopens," it said.
"Investor questions are increasingly focused on understanding the impact on energy, food, automobile, and semiconductor supply chains," said Morgan Stanley Research in a report.
Write to Ronnie Harui at ronnie.harui@wsj.com and Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
March 16, 2026 04:33 ET (08:33 GMT)
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