MOSCOW, April 13. /TASS/. Trading on Asia’s largest exchange, the Tokyo Stock Exchange, opened with a decline following statements by US President Donald Trump on a blockade of the Strait of Hormuz and the lack of progress in talks with Iran in Pakistan.
Futures for Brent crude oil with June delivery on the London ICE exchange rose by more than 9%.
TASS has compiled the key developments.
Oil prices
Brent crude oil futures contract with June delivery on the ICE exchange rose by more than 9%, according to trading data.
As of 02:38 a.m. Moscow time, Brent was up 9.11% at $103.87 per barrel.
By 07:45 a.m. Moscow time, gains slowed down to $102.26 per barrel (+7.42%).
At the same time, WTI crude futures for May 2026 delivery rose by 8.57% to $104.85 per barrel.
Fuel prices
US President Donald Trump said in an interview with Fox News that fuel prices in the country could rise further ahead of the November midterm congressional elections.
The Swedish government is temporarily lowering taxes on gasoline and diesel and introducing new subsidies for electricity and gas, according to a government press release.
The tax will be reduced "to the EU minimum level," which is expected to cut gasoline prices by 1 krona ($0.11) per liter and diesel by 0.40 ore ($0.043).
The measure will be in effect from May 1 through the end of September and is expected to cost the budget 1.6 bln kronor ($171.55 mln).
Market reaction
Trading on the Tokyo Stock Exchange opened with a decline, according to session data.
The Nikkei index, reflecting the performance of 225 leading Japanese companies, fell by 1.1% to 56,299.51 points.
Hong Kong stocks declined amid reports that the United States and Iran failed to make progress in talks in Islamabad.
The Hang Seng index dropped by 306.28 points (1.18%) to 25,587.26.
The Hang Seng China Enterprises index fell by 64.25 points (0.74%) to 8,590.79.
The Hang Seng Tech index declined by 47.32 points (0.97%) to 4,812.94.
Russia’s MOEX and RTS indices rose by 0.75% at the opening of the main session to 2,745.96 and 1,123.83 points, respectively (as of 10:00 a.m. Moscow time).
By 10:05 a.m. Moscow time, the MOEX Index slowed its gains to 2,743.45 points (+0.66%), while the RTS stood at 1,122.8 points (+0.66%).
India’s benchmark indices – BSE Sensex and NSE Nifty 50 – fell by more than 1.5% amid rising oil prices and the US blockade of the Strait of Hormuz.
The Sensex dropped by 1,500 points to 76,139, while the Nifty fell below 23,750.
The volatility index rose to 21.3 from 18.8 in the previous session.
The Indian rupee weakened to 93.32 per US dollar and has depreciated by nearly 3% since the start of the Middle East conflict.
Investor concerns
According to a source close to the Hong Kong Exchange, investor concerns over a potential new escalation around Iran and rising oil prices are weighing on markets.
Analysts say sentiment on the Tokyo Stock Exchange remains pessimistic due to the deadlock in negotiations.
Market participants also fear disruptions in energy supplies and further deterioration in fuel markets due to a potential reduction in Iranian oil exports, estimated at 1.8 mln barrels per day, amid the blockade of the Strait of Hormuz.
Business Standard also noted that fears of renewed escalation around Iran and rising oil prices are driving market declines.
Outlook
Global oil prices could exceed $150 per barrel as early as this week, Kirill Dmitriev, Russia’s presidential envoy for investment and economic cooperation and CEO of the Russian Direct Investment Fund, said.
He noted that the longer the Strait of Hormuz remains closed, the higher oil and gas prices will rise, deepening the energy crisis in the European Union and the UK and prolonging recovery.
Oil supplies from Saudi Arabia to China in May may be cut roughly in half to about 20 mln barrels from around 40 mln in April, Bloomberg reported citing sources.
According to these sources, the decline is linked to a sharp rise in prices after Saudi Aramco raised official selling prices to record levels amid the Iran-related conflict and the effective closure of the Strait of Hormuz.
Energy security
Head of Italian energy company Eni Claudio Descalzi called for suspending the EU’s planned ban on Russian gas imports set for 2027.
Indonesian President Prabowo Subianto traveled to Moscow for talks with Russian President Vladimir Putin, Jakarta Globe reported citing cabinet secretary Teddy Indra Wijaya.
The leaders are expected to discuss energy security.
Indonesia will continue cooperation with Russia to ensure stable energy supplies, including oil, Wijaya said.
US energy group ExxonMobil plans to invest more than $20 bln in offshore oil production in Nigeria, focusing on deepwater projects, APA reported following a visit by a senior ExxonMobil delegation to Abuja.
ExxonMobil Upstream Company senior vice president for deepwater projects Hunter Farris said the company is encouraged by improvements in Nigeria’s investment climate, prompting it to reaffirm its commitment to the country.
Among the company’s projects of interest are Usan, where drilling is planned, Owowo with reserves of 1 bln barrels, and Bosi.
Farris added that output under a production-sharing agreement at the deepwater Erha project has been extended to 2042, and ExxonMobil is carrying out major work to extend the service life of the Erha floating storage facility to restore maximum output.