TOKYO – Brent crude rallied towards US$100 per barrel on Sept 9, keeping the mood in Asian stock markets subdued, as attacks intensified in the Middle East, stoking inflation worries ahead of the release of closely watched US consumer price data.

The yen strengthened towards the nearly seven-month high touched against the dollar on Sept 8 as traders exited short positions in the Japanese currency amid expectations for faster Bank of Japan interest rate hikes and a potential rush of repatriation of Japanese capital.

The euro edged higher ahead of the European Central Bank’s policy decision on Sept 10, with markets widely expecting a hike amid inflationary pressures from the Iran war.

Iranian-backed Houthis in Yemen launched strikes on several Saudi cities on Sept 8, further embroiling a US ally in the conflict, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.

Oil prices jumped for a fourth straight session on Sept 9, gaining more than US$1 in early trade.

Brent crude futures rose US$1.57 to US$99.49 a barrel, the highest level since late June. US West Texas Intermediate crude was at US$94.63 a barrel, up US$1.60.

Stocks in Sydney slipped around 0.3 per cent, while Hong Kong’s Hang Seng dropped 0.6 per cent and mainland Chinese blue chips edged up 0.2 per cent.

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