Asian Stocks Plummet on Oil Price Spike and Inflation Fears
Asian stocks plummeted on July 24 as oil prices surged above $100 per barrel for the first time in two months, reviving fears of a fresh inflation shock. The Brent crude price held steady at $100.85 per barrel after jumping by 7% overnight.
The intensifying conflict in the Gulf, including attacks by Iran-aligned Houthis on Saudi tankers and US military air strikes on Iran, has choked off key oil supplies. Nigel Green, CEO of deVere Group, warned that markets are still working out the implications of this situation.
News of higher tariffs from the US administration also added to inflationary pressures. This sent 30-year Treasury yields soaring and benchmark European borrowing costs climbing to their highest levels since 2011.
In response, investors now expect a rate hike from the Federal Reserve as soon as next week, with a one-in-three chance of this happening. A move in September is already fully priced in.