$100 Oil Sparks Global Market Turmoil

The global market is in turmoil due to rising tensions between Iran and the US. Oil prices are surging, with Brent crude oil up 1% on Wednesday and mere cents away from reaching $100 per barrel.

This psychological level of $100 has significant implications for central banks, as a rise above this threshold would likely prompt rate hikes. The increased cost of energy could also weigh on economic growth and impact businesses and consumers.

Natural Gas prices are also spiking, with European Natural Gas hitting its highest level since 2022 due to low gas stocks ahead of winter.

The US Treasury Secretary has intervened in the market, signaling that the US will protect its Treasury market and prop up the yen. This has led to a strengthening of the Japanese currency, with USD/JPY close to the 153 handle.