Escalating Middle East tensions are weighing on global markets, with the ASX forecast to open lower this morning.

Oil prices reached a recent high after the US military struck three Iranian oil tankers, following attempted attacks on US warships in the Persian Gulf region. Brent Crude was up 0.69 per cent to $96.944 per barrel this morning. Sustained crude prices near the US$100 mark matter beyond the pump: higher oil flows through to transport and production costs, and oil-importing economies like Australia typically face pressure on the current account and input costs when crude stays elevated, while local energy producers often see revenue benefits.

Wall Street closed lower as oil prices pushed towards US$100 per barrel, adding to uncertainty from rising Federal Reserve rate policy concerns and ongoing tariff friction. The S&P 500 fell 0.38 per cent to 7,718.60 points, the Dow Jones dropped 0.51 per cent to 53,414.25, and the Nasdaq declined 0.29 per cent to 26,506.99. Rising energy costs feed into inflation measures that the Federal Reserve watches closely, which is one reason oil moves and rate expectations are tracked together by markets.

Data centre boom driving divergent LNG demand outcomes

The data centre boom is driving structural LNG demand in Southeast Asia, according to Wood Mackenzie. The research firm projects that hyperscale expansion will drive 16% annual LNG demand growth in Southeast Asia through 2035, while India's renewables-dominated grid shuts gas out entirely.

According to the new research, the hyperscale data centre boom sweeping Asia is generating materially divergent outcomes for LNG demand across the region, with Southeast Asia emerging as a compelling new demand driver while South Asia remains structurally out of reach for gas. The finding adds to a broader debate about how to power energy-hungry data centres worldwide, with electricity demand from computing infrastructure emerging as a major new source of load on regional grids.

ASX company news

On the market news front:

• Daly Resources (ASX: DLY) kicks off a geochem survey ahead of maiden drilling at Batten
• Prodigy Gold (ASX: PRX) confirms high-grade gold results at Tanami North
• Hot Chili (ASX: HCH) extends enrichment zone at La Verde
• Caspin Resources (ASX: CPN) discovers a new high-grade tin and tungsten prospect at Bygoo
• West Coast Silver (ASX: WCE) wraps up a $6.0 million placement

Currency and commodities

In forex, the Australian dollar is buying US$0.721.

In commodities, all priced in US dollars:

• Iron ore was up 0.15 per cent to $99.57 per tonne in Singapore
• Brent Crude was up 0.69 per cent to $96.944 per barrel
• Gold was selling at $4,404.98
• US natural gas futures were down 0.46 per cent to $2.9612 per gigajoule

That's HotCopper's Market Open, I'm Colin Sandell-Hay.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult a certified financial advisor before making any investment decisions.