Oil Jumps 20% on Hormuz Blockade, Clouds Outlook Ahead of Meta’s Earnings
Crude oil prices climbed about 20% over the past week as Iran maintained closure of the Strait of Hormuz and the US upheld a naval blockade, sending Asian stocks lower. This rising geopolitical risk and market weakness set a cautious tone ahead of Meta’s earnings report scheduled next week.
1. Middle East Geopolitical Tensions
Iran refused to reopen the Strait of Hormuz while the US maintained a naval blockade, driving Brent and WTI crude roughly 20% higher over the past week. The surge in oil prices and heightened risk premium pressured equity markets across Asia, with major indexes in Hong Kong, Shanghai, Seoul and Sydney all ending lower.
2. Implications for Meta Ahead of Earnings
The market’s cautious stance on elevated energy costs and geopolitical uncertainty comes just days before Meta is set to report quarterly results. Investors will be watching for any commentary on advertising demand and cost pressures that could be influenced by broader economic volatility.