$100 Oil Prices Send Markets into a Tailspin as Tariffs Bite

Oil prices surged through $100 a barrel for the first time since May on Thursday as tensions in the Middle East escalated, causing concern about inflation and growth risks. The U.S. imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, including the European Union and China, adding to market uncertainty.

The U.S. Federal Reserve meeting and corporate earnings reports from tech giants Apple, Microsoft, and Amazon are setting up a busy week for U.S. markets. The Fed is expected to hold rates steady on Wednesday, but recent consumer and producer price data have helped calm rate-hike bets.

The Bank of Japan meets on Friday, with policymakers looking to deliver a hawkish message that could haul the yen away from a four-decade low against the U.S. dollar. The BOJ has already raised rates once this year, but some see scope to raise them at a faster pace if price pressure persists.

The Bank of England is expected to hold interest rates steady on Thursday, despite signs of jobs market weakness and inflation picking up again. The BoE's chief Andrew Bailey will likely face questions about the impact of Prime Minister Andy Burnham's agenda on monetary policy.