Company Interview / the open: Oil and gas prices surge 🛢️ ASX set for flat opening

Global equity markets slumped further overnight as attacks on energy infrastructure in the Middle East war caused oil and gas prices to surge again. The local market is set to take a breath this morning with ASX futures pointing down 0.1%.                             

A raft of central banks made policy decisions in the past 24 hours with all committed to tackling any surge in inflation with tighter policy. The Bank of England, European Central Bank and the central banks of Switzerland and Sweden left rates on hold overnight, but said that rising energy prices could spark a wave of inflation.                                 

Israel’s prime minister has said his country would not target any more Iranian energy assets as strikes on energy plants and subsequent retaliatory attacks sent energy prices spiraling. Brent crude surged to $119 a barrel overnight before retreating with trading volatile as Iran attacked more energy targets prompting the US government to expand supply.

Gold prices dropped more than 4% on inflation concerns and expectations that central banks will keep borrowing costs elevated. 

The US dollar is down 0.7% on the day, whilst the Australian dollar is trading at US70.9 cents.