Analysts: Soaring oil prices may lead to a sell-off of US assets.

Rising crude oil prices are a headache for overseas importers, but they may be shifting the burden onto US assets. Following the US-Israeli attack on Iran, global oil import costs have increased, and the currencies of most major economies have been impacted against the US dollar. This double whammy creates a situation where, with a stronger dollar and soaring oil prices, overseas countries and businesses may ultimately have to sell off their holdings of US stocks and bonds to pay for the suddenly more expensive oil. This is a risk worth monitoring, especially given the growing share of the US market held by foreign countries and governments. Bridget Kurana, a portfolio manager at Wellington Management, stated that so far, foreign investors haven't needed to liquidate US assets to finance higher energy costs. However, if oil prices remain high, these countries (such as Japan and South Korea) may need to reduce their holdings of US stocks and bonds to raise funds for energy imports. (Jinshi)