Oil Price Surge Triggers $15B Equity Fund Exodus

Investors pulled $15.52 billion out of global equity funds in the week through September 9, marking the largest outflow since March 18, according to LSEG Lipper data.

The surge in oil prices amid the U.S.-Iran war fueled concerns about inflation and rising borrowing costs, with Brent crude hitting a four-month high of $109.97 a barrel on Friday.

Despite net inflows of $11.16 billion in European equity funds and $3.03 billion in Asian equity funds, investors remained cautious, driven by the U.S. producer price report that indicated inflation remained firm in August.

The Federal Reserve is expected to raise interest rates next week, further contributing to investor nervousness.