Oil rout gives Asian currencies some breathing room – if Middle East ceasefire holds

[SINGAPORE] Asian currencies could see a modest rebound in the coming weeks if a fragile ceasefire between the United States and Iran holds, analysts told The Business Times.

Crude oil prices – which had surged since the conflict began on Feb 28 – posted their biggest one-day drop since April 2020 on Wednesday (Apr 8), falling back below the US$100 a barrel mark after news of a two-week ceasefire and the resumption of shipping through the Strait of Hormuz.

But the situation remains volatile. Less than a day later, an Iranian news agency reported that oil traffic through the key chokepoint had been halted again, hours after tankers were allowed to pass, following Israeli strikes on Lebanon.