Saudi Arabia leads Central Reserve Fund to secure war maritime insurance costs

Asian equities declined on Thursday after the Central Reserve Fund announced a strategic move to insure cargo ships moving through the eastern Mediterranean against military threats. The fund's initiative aims to counter rising insurance premiums driven by increased attacks on shipping lanes since the outbreak of conflict in the Middle East. Concurrently, global energy prices pushed Brent crude futures above $101 per barrel in early trading, crossing the $100 threshold for the first time since July. This price surge reignites concerns that higher energy costs will feed back into global inflation before next month's US inflation data is released. In Washington, ten-year Treasury bond yields stabilized at 4.8406% after settling from a session high set in late 2023. The Federal Reserve signaled a $6 billion purchase of long-term bonds to stabilize the market, a figure that disappointed some investors anticipating a larger program. The combination of supply chain fears and sticky prices suggests persistent pressure on purchasing power as markets await further policy direction from the US Federal Reserve.