Oil Surges, Asian Markets Mixed as US-Iran Deadlock Worsens

Global oil markets surged sharply on Friday as the US-Iran military standoff over the Strait of Hormuz showed no signs of resolution, with crude futures jumping approximately five dollars per barrel. The spike reflected deep investor anxiety over potential disruptions to one of the world's most critical energy transit corridors.

Asian equity markets traded in mixed territory, with risk-sensitive indices retreating while defensive sectors held steadier. Indian shares were seen opening muted amid the combination of higher oil prices and a weak earnings forecast from technology major Infosys, adding domestic headwinds to an already volatile external environment.

The US dollar strengthened for the week as geopolitical uncertainty drove safe-haven demand, with traders pricing in a prolonged impasse between Washington and Tehran. Currency and bond markets signalled that investors are positioning for an extended period of elevated risk rather than a near-term diplomatic resolution.

Analysts warned that a sustained oil price shock at current levels could feed directly into inflation across import-dependent economies, including Pakistan, where energy costs remain a significant pressure point. The convergence of Middle East military tension, dollar strength, and commodity price escalation represents a compounding external risk for emerging markets.