Iran fired missiles at Israel and some Gulf nations while explosions could be heard around Tehran and the central Iranian city of Isfahan on Friday, as the United States prepared to further reinforce its already significant military forces in the Middle East.
As the war that began Feb. 28 was to enter its sixth week, Israel, Bahrain, Kuwait warned about incoming missile fire, although it was unclear if anything was struck. Activists reported strikes
around Tehran and the central city of Isfahan but it wasn’t immediately clear what was hit.
Iran’s attacks on Gulf region energy infrastructure and its tight grip on the Strait of Hormuz, through which a fifth of the world’s oil and natural gas transits in peacetime, has sent oil prices skyrocketing.
Oil prices surged while Asian financial markets rose moderately during cautious trading. Benchmark U.S. crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
U.S. President Donald Trump said U.S. forces will keep hitting Iran “very hard” in the next two or three weeks.
The largest American aircraft carrier in service sailed out of Split, in Croatia and “remains poised for full mission tasking in support of national objectives in any area of operation,” the Navy’s 6th Fleet announced.
It was unclear where it was going. The USS Abraham Lincoln remains in the Arabian Sea and the USS George H. W. Bush aircraft carrier departed Norfolk on Wednesday to head to the Mideast.
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Oil prices continued to surge on worries of a prolonged Iran war but the Asian markets that were open Friday rose moderately in cautious trading, while others were closed for the Good Friday holidays.
Benchmark U.S. crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
The U.S. only relies on the Persian Gulf for a fraction of the oil it imports, but oil is a commodity and prices are set in a global market.
The situation is very different in Asia. Japan, for example, relies on access to the Strait of Hormuz for much of the nation’s oil import needs and would need to rely on alternative routes. But some analysts say Japan and oher nations are counting on an agreement with Iran to allow transports.
Japan’s benchmark Nikkei 225 gained 0.9% in Friday morning trading to 52,938.62. South Korea’s Kospi jumped 2.1% to 5,344.41. The Shanghai Composite sank 0.5% to 3,899.57. Trading was closed in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia and India.
Wall Street, where trading is closed Friday, finished its first winning week since the start of the Iran war, although trading started out with a decline driven by a surge in oil prices.
Bangladesh is curtailing office hours and enforcing early closure of malls and shops beginning Friday to handle its energy crisis related to the war.
The country’s cabinet ordered 30% spending cuts for fuel and power at government offices, suspended some staff training and stopped purchases of new vehicles, ships and aircraft. Decorative lighting will not be allowed for celebrations.
Bangladesh, a nation of more than 170 million people, is seeking alternative fuel sources and $2.5 billion in external financing for imports, which account for 95% of its fuel.
Australian Energy Minister Chris Bowen on Friday urged motorists getting away for a long weekend during the Easter holiday to fill up in cities because most of the nation’s fuel shortages are in rural areas.
Among 2,400 gas stations in New South Wales, Australia’s most populous state, 182 had run out of diesel by Friday.
In Australia’s second-most populous state, Victoria, 76 gas stations were out of diesel. In the remaining states ranked by the most populous first, Queensland had 75 stations without diesel, Western Australia had 37, South Australia had 28 and in Tasmania there were seven.
“For those Australians planning a road trip this weekend, given our shortages are predominantly in rural and regional Australia, it makes sense to fill up in the city to help the country if you can,” Bowen said in Sydney.
The government, which blamed regional shortages on panic buying and distribution problems, is concentrating on delivering fuel to farmers for planting crops.
