Gas prices jump 50% in Europe after Iranian drone strikes force Qatar to close the world’s largest LNG export facility. Oil prices are up 6% with the Strait of Hormuz still closed. The US dollar strengthens.
And then in our deep-dive interview, ANZ’s Chief Economist for Southeast Asia and India Sanjay Mathur analyses the effects of the latest Iran oil price shock on Asian economies outside of China.
5 things to know in 5 minutes:
Gas prices in Europe surged 50% overnight after Qatar closed the Ras Laffan LNG export facility. Oil prices rose a relatively modest 6%. ANZ Senior Commodity Strategist Daniel Hynes says that suggests some confidence that supply lines can reopen quickly, but he’s more cautious.
Daniel says the main thing to watch now for oil markets is how widely the conflict spreads, and how long it might go on for.
The US dollar rose 1% overnight with oil prices and some safe haven buying. However the Australian dollar’s fall was more moderate, while the Kiwi dollar fell by more than 1%, as ANZ’s Head of FX Research Mahjabeen Zaman explains.
Australia’s ANZ Indeed monthly job ads series showed a 3.2% rise in February, following on from a 5.2% rise in January, says ANZ Economist Aaron Luk.
Australian Business Indicators data for the December quarter showed a deceleration in wages and salaries growth to 0.9% for the quarter, which was softer than expected, says ANZ Senior Economist Adelaide Timbrell.
Bernard.
PS: Catch you tomorrow with more reaction and analysis of the Iran conflict’s impact on the global economy and markets.
