Crude Oil Prices Soar, Global Markets Falter Amid Trade Tensions

Global stock markets are experiencing a downturn, with the S&P 500 Index down -0.54% and the Nasdaq 100 Index down -0.96%. The Dow Jones Industrial Average is also falling, down -0.32%. Crude oil prices have soared to a 3.5-month high, up over +3%, amid fears of a prolonged US-Iran conflict.

The surge in crude oil prices has pushed global bond yields higher, weighing on stocks. The 10-year UK Gilt yield rose to a 19-year high of 5.34%, while the 10-year German Bund yield climbed to a 15-year high of 3.49%. US Treasury note yields also increased, reaching a 2.75-year high of 4.92%.

The escalation of trade tensions between the US and Canada is another factor contributing to market uncertainty. The conflict has led to tariffs being imposed on hundreds of US goods by Canada, and the US has responded with new tariffs and trade restrictions.