Global Markets Plummet on Surging Oil Prices and Geopolitical Risks

Global markets suffered a broad decline on Friday, September 11, 2026, as surging oil prices and escalating geopolitical risks overshadowed enthusiasm for artificial intelligence and semiconductor stocks. The Nikkei 225 in Japan dropped 1.9%, while the KOSPI in South Korea fell more than 2%. Asian equities were among the hardest-hit major markets, with the MSCI Asia-Pacific ex-Japan index declining 1.5%.

The sharp increase in energy prices has significantly changed the global interest-rate outlook, with investors now considering the possibility of rate hikes to prevent another acceleration in inflation. Brent crude briefly reached nearly $110 per barrel before retreating toward $104, remaining on track for a weekly gain exceeding 8%. The Strait of Hormuz remains crucial to global markets due to its impact on energy supplies.

Australia provided one of the clearest examples of the week's deterioration in investor sentiment, with the S&P/ASX 200 falling 0.9% and posting its largest weekly decline since mid-March. Mining stocks were particularly weak, with BHP dropping 4.1% and Rio Tinto declining 3.5%. Australian government bond yields climbed above 5%, reaching their highest levels since 2011.

The European Central Bank raised interest rates by 25 basis points on Thursday, pushing European government bond yields to multi-year highs. Several major financial institutions now expect additional ECB tightening, with Goldman Sachs, Barclays, and Citigroup anticipating another rate increase in December.