Oil Price Surge Sparks Market Sentiment Shift

The recent surge in oil prices due to heightened tensions between the U.S. and Iran has had far-reaching effects on market sentiment across various asset classes and regions.

Wall Street futures have taken a hit, trading around half a percent lower, while major European benchmarks are also down on the day. Earlier, Asian markets finished mixed.

The Dollar Index has declined amidst the dollar's retreat as markets weigh hawkish comments from Fed Chair against the Fed's status quo on rates in recent reviews.

Ten-year sovereign bond yields have hardened across regions due to fears of fuel-led inflation and increased rate hike expectations from the Fed.