Wrap Oil

• Asian stock markets in Japan, South Korea, and Australia were expected to decline on Thursday following losses on Wall Street. • US oil prices rose for an eighth consecutive session while the S&P 500 Index fell 0.5%, driven by drops in industrial and consumer-discretionary shares. • Rising oil prices and Treasury yields are increasing inflation fears for investors ahead of the release of key US price data.

• Asian stock index futures for Japan, South Korea, and Australia are poised to rise, following a positive trend on Wall Street. • The market shift comes as oil price pressures eased after President Donald Trump downplayed the likelihood of a prolonged conflict with Iran, reducing inflation fears. • This follows a recovery in the U.S. market where the S&P 500 ended a three-day decline and the Nasdaq 100 rose 0.2%.

• European equity markets recovered from a shaky start on July 20, 2026, with major indices ending the morning session slightly higher. • Oil prices retreated during the session as Iran indicated a willingness to consider mediation proposals. • The shift in sentiment reflects a cautious optimism among investors regarding geopolitical tensions and energy stability.