Oil Price Surge Slams European Markets Ahead of ECB Decision

European markets are feeling the pressure of rising oil prices as Brent crude approaches $100 and equities fall. The current tensions between the US and Iran have pushed oil prices higher, with Brent crude up by 2.7% to $100.55 and WTI crude at $95. This surge in oil prices is translating into increased bond yields, with the 10-year Treasury yield reaching 4.808%. As a result, European stocks are sliding, with the DAX down by 1.6% and the CAC 40 by 1.9%. US futures have also dropped, with S&P 500 and Nasdaq futures falling by 0.4%.

The market is waiting for the upcoming US CPI report this Friday, which could provide further insight into inflation expectations. In the meantime, traders are keeping a close eye on oil prices, as they continue to influence monetary policy decisions. The European Central Bank's (ECB) decision tomorrow will likely focus on inflation and future policy, with a rate hike expected.

Gold is also feeling the pressure from rising oil prices, with its price under pressure amid escalating US-Iran attacks and US CPI risks. However, it has caught a technical bounce to $4,403.