Crude oil prices posted a second consecutive day of gains, reinforcing a market regime where energy assets are significantly outperforming broader equity indices.
The sustained rally in oil reflects persistent investor caution regarding escalating geopolitical tensions in the Middle East, which continue to weigh on global supply expectations.
While energy markets absorbed the geopolitical premium, Asian equity markets faced renewed selling pressure.
Investors in the region are grappling with rising inflation concerns and growing expectations for further interest rate hikes, creating a divergent performance landscape between commodities and equities.
This divergence highlights the ongoing challenge for central banks to balance inflation control with economic growth amid external shocks.
The oil market's strength is driven by renewed fighting in the Middle East, which has reignited fears over potential supply disruptions.