Oil prices jump then fall after Middle East tensions and Fed decision

Oil prices shot up sharply, briefly topping $119 a barrel, after a drone strike in Qatar and threats exchanged between Iran and the U.S. raised fears about energy supplies from the Middle East. This surge hit stock markets in Asia, particularly in Japan, India, and South Korea, and also pressured the South Korean won.

The price spike was short-lived, however. Oil later gave back most of its gains as the market weighed comments from figures like Donald Trump and analyst Bessent, and as the U.S. Federal Reserve decided to hold its key interest rate steady. U.S. stocks pared their losses as oil prices receded.