Asian shares gain and oil slips back despite a barrage of attacks by Iran

HONG KONG (AP) — Asia shares were mostly higher on Wednesday with benchmarks in Japan and South Korea jumping as oil prices fell back slightly despite a barrage of attacks by Iran on its Gulf neighbors.

U.S. futures rose 0.4% after a session of moderate gains on Wall Street ahead of the Federal Reserve’s decision on interest rates later in the day. With higher oil prices feeding into other inflation, the Fed is widely expected to keep rates on hold.

Worries over global oil and gas supplies and rising prices are still clouding global markets, though Brent crude, the international standard, fell 2.3% to around $101 per barrel, down from above $106 on Monday.

U.S. benchmark crude fell more than 3% to $93.17 per barrel.

Iran lashed out Wednesday with multiple attacks on its Gulf neighbors and Israel following the killing of one of its top leaders in an airstrike, using some of its latest missiles to evade air defenses and killing two near Tel Aviv.

But markets seem to have taken the latest escalations in stride.

Tokyo’s Nikkei 225 gained 2.6% to 55,106.69 after the government reported exports were higher than expected in February.

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In South Korea, the Kospi jumped 3.8% to 5,854.28.

Lower oil prices are a boon for big oil importers like Japan and South Korea.

Hong Kong’s Hang Seng lost 0.2% to 25,816.92, while the Shanghai Composite index shed 0.5% to 4,028.94.

Australia’s S&P/ASX 200 climbed 0.5% to 8,653.40.

Taiwan’s Taiex added 1.3% and India’s Sensex advanced 0.6%.

Oil prices were down Wednesday after earlier gains. Brent crude, the international standard, fell 1.2% to $102.22 per barrel. It was above $106 on Monday. Benchmark U.S. crude was down 1.8% early Wednesday to $94.49 a barrel.

Global oil flows remain largely constrained, ING Bank analysts Warren Patterson and Ewa Manthey wrote in a research note on Wednesday, even as hopes were growing that Iran might be allowing more vessels through the Strait of Hormuz, a key waterway for global oil and gas transport.

The strait, which roughly a fifth of the world’s crude oil passes through, has been largely closed and Iran had said it was blocking the U.S., Israel and its allies from crossing it.

On Tuesday, U.S. stocks held steadier as the S&P 500 rose 0.3% to 6,716.09. The Dow Jones Industrial Average edged up 0.1% to 46,993.26, and the Nasdaq composite was 0.5% higher to 22,479.53.

Shares of Delta Air Lines rose 6.6%. The U.S. carrier raised its revenue forecast as it expected strong demand, which could help offset jet fuel cost rises due to the Iran war.

Uber Technologies rose 4.2%, after it announced expanding its partnership with chipmaker Nvidia to launch an autonomous vehicle fleet in the U.S starting with San Francisco and Los Angeles next year.

In other dealings early Wednesday, the U.S. dollar fell to 158.85 Japanese yen from 159.01 yen. The euro was trading at $1.1539, down from $1.1542.

AP Business Writers Matt Ott and Stan Choe contributed.