Markets Shaken by Jobs Report, Oil Spike Ahead of Key Inflation Data

Global markets experienced a rollercoaster ride over the past few days due to conflicting forces. On August 10, 2026, global equities rallied to new highs after the US July jobs report revealed an unexpected contraction of 23,000 positions. This data reduced expectations for a Federal Reserve rate hike in September, pushing Treasury yields lower and sparking optimism.

However, this momentum was short-lived as Brent crude prices surged above $90 per barrel amid renewed uncertainty over a US-Iran peace deal and the reopening of the Strait of Hormuz. Rising oil prices stoked inflation concerns, prompting a pullback in US and Asian equities on August 11 and 12.

Lukman Otunuga, Head of Market Research at FXTM, noted that this uncertainty around the Fed's path created a positive environment for risk assets, at least temporarily. The jobs data also underscored the complexity of the current economic landscape.