Global Markets Slide Amid Fed Rate Hike Fears and Oil Price Surge

Global markets retreated on Monday, with shares in Asia and US futures declining due to expectations of interest rate hikes by the Federal Reserve. The DAX in Germany lost 0.9% to 26,339.04, while the CAC 40 in Paris edged 0.1% lower to 8,390.43.

In contrast, oil prices surged more than 3% after US forces struck Iranian rocket launchers on the Strait of Hormuz. Brent crude jumped 3.8% to $91.40 per barrel, while U.S. benchmark crude oil traded 3.8% higher at $86.58 per barrel.

The move is seen as a return to open conflict in the region, which could be detrimental for the economy. Stephen Innes of SPI Asset Management noted that quiet in the Strait of Hormuz is not the same as peace, causing oil traders to reassess their expectations.