Global Markets Decline Amid Oil Surge and Rate-Hike Fears

Global markets declined this week as oil prices surged and rate-hike fears intensified. The Brent crude price passed $100 per barrel, driven by escalating U.S., Iran geopolitical tensions that sparked concerns over potential oil supply disruptions and persistent inflationary pressure.

The U.S. 10-year Treasury yield climbed to its highest level since October 2023, boosting expectations for rate-hike action at the Federal Reserve’s upcoming meeting next week.

The S&P 500 (SP500), Nasdaq COMP, and Dow DJI lost 0.6%, 0.7%, and 426 points, respectively, for the week. The European equities SXXP ended the week 1.6% lower amid broader concerns over macroeconomic headwinds from higher energy prices and interest rates.