Stocks skid in Asia, bonds buckle as oil climbs
SYDNEY, May 18 : Asian share markets were on the skids on Monday as fresh drone attacks in the Gulf shoved oil prices and bond yields higher, while the AI boom is set to be tested by earnings from Nvidia this week. A drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones, as U.S. President Donald Trump warned that Iran must act “fast” to reach a deal. Meanwhile, the vital Strait of Hormuz remains closed to all but a trickle of shipping as Tehran tries to formalise its control of the waterway that during normal times carries 20 per cent of the world’s oil trade. “The closure is draining global oil inventories fast,” warned analysts at Capital Economics. “Inventories could reach critical levels by end-June, setting the stage for Brent at $130-140pb, if not higher.” “If the strait is closed through year-end and oil stays around $150pb into 2027, that would push inflation to near 10 per cent in the UK and …

