Global Markets Plummet Amid Middle East Tensions
Global markets slumped on escalating tensions in the Middle East, pushing US equities down over 2% and Brent crude oil prices above $100 per barrel.
The surge in oil prices has revived concerns about inflation, with higher energy costs potentially leading to increased borrowing costs and reduced attractiveness of risk assets.
US Treasury yields also rose sharply, crossing 4.71% for the first time since January 2025, further exacerbating market volatility.
European markets declined in response to rising energy prices, weakness in technology and consumer stocks, and escalating US-Iran tensions.
The European Central Bank (ECB) maintained interest rates unchanged, but policymakers are assessing whether the oil price shock could create fresh inflationary pressure.