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US President Donald Trump has initiated an investigation into major oil companies over persistent high gasoline prices, amid mounting pressure over geopolitical tensions in the Middle East.
Asian equity markets fell Monday as escalating Middle East tensions drove oil prices higher and reinforced market expectations for aggressive US Federal Reserve rate hikes, while political turmoil in Britain weighed on sterling.
Oil prices gained Friday following the collapse of US-Iran peace negotiations in Switzerland, with geopolitical tensions in Lebanon complicating a fragile interim agreement aimed at stabilizing global energy markets.
A memorandum of understanding between the US and Iran to resolve Middle East tensions could help stabilise global oil prices, though the recovery period will take several months, according to Malaysia's Political Secretary to the Finance Minister.
An interim US-Iran agreement has taken effect, allowing oil tankers to resume transit through the Strait of Hormuz and triggering a sharp drop in global crude prices. However, unresolved issues and continued fighting in Lebanon cast doubt on the deal's durability.
Oil prices fell more than 2% following a US-Iran ceasefire agreement that would reopen the Strait of Hormuz and lift sanctions on Iranian crude, signalling a potential oversupply next year.