Oil prices drop as Trump tones down Iran threats; Asian markets mixed
Oil prices fell 3% Thursday after US President Donald Trump signaled he was backing away from imminent military action in Iran. Trump said Wednesday he would "watch it and see" following reports that protest killings in Iran had stopped. This reverses recent price spikes that came from fears of supply disruption from potential US intervention in the Islamic Republic. Gold and silver also declined on the news. Asian markets showed mixed reactions. Hong Kong, Shanghai, Taipei, Wellington, Mumbai, and Kuala Lumpur fell, while Sydney, Seoul, Bangkok, and Manila posted minimal gains. This follows Wall Street's Wednesday decline despite solid bank earnings and positive US retail sales data showing a 0.6% increase in November. Investors remain uneasy about potential US interventions in Iran and Greenland, plus Trump's threats to Federal Reserve autonomy. Analysts also point to Trump's proposed 10% credit card interest rate cap as adding unpredictability. The US Supreme Court delayed its ruling on the legality of Trump's sweeping tariffs. In currency markets, South Korea's won slid toward its weakest level in 16 years. US Treasury Secretary Scott Bessent called the depreciation "not in line with Korea's strong economic fundamentals" and said forex market volatility is "undesirable," causing the won to gain 1%. Tokyo's Nikkei fell 0.8% after speculation that Prime Minister Sanae Takaichi would call a snap election to capitalize on strong approval ratings. Her party confirmed she intends to dissolve parliament next week. Takaichi's cabinet approved a record ¥122.3 trillion ($768 billion) budget for the fiscal year starting April 2026 to address inflation and support the world's fourth-largest economy. West Texas Intermediate crude dropped to $60.16 per barrel while Brent crude fell to $64.58. The euro traded at $1.1640 against the dollar. With oil prices volatile and global markets reacting to US policy shifts, how will these developments affect your investment strategy or business costs in the coming weeks?
SOURCE: https://www.channelstv.com/2026/01/15/asia-markets-mixed-oil-falls-after-trumps-iran-comments/