TOKYO – Oil prices were in focus yesterday as US president Donald Trump ramped up threats towards Iran, shaking up markets subdued by holidays in Asia and the United States. West Texas Intermediate cooled after rising more than one percent to near US$64 per barrel, while Brent eased slightly to just under US$69. Trump warned Iran of the “consequences of not making a deal” ahead of talks between Washington and Tehran in Geneva. 

The US president has repeatedly threatened military action against the Islamic republic, first over its deadly crackdown on anti-government protests, and then more recently over the country’s nuclear programme. 

The warning rippled through markets in an otherwise quiet start to the week, as Shanghai, Hong Kong, Taipei, Seoul, and Singapore remained closed for the extended Lunar New Year holiday. US markets were set to reopen later Tuesday after Monday’s break for Presidents’ Day. 

Gold slid below US$5 000 per ounce, while silver slipped three percent. Tokyo closed down 0.4% after the world’s fourth-biggest economy reported weak growth in the fourth quarter on Monday. 

“With the US market closed, the Japanese market is expected to start today with little movement due to a lack of material,” brokerage house Monex said in note. 

“In the foreign exchange market, the dollar/yen exchange rate was trading in the mid-153 yen range, a weaker yen than the previous day, which is likely to support export-related stocks.” – Nampa/AFP