Global Markets Plunge Ahead of US Jobs Report as Oil Prices Surge

Global stock markets retreated on Thursday as investors became cautious ahead of Friday's key US jobs report. The numbers are expected to be closely watched by market participants, who are trying to gauge whether the US central bank will raise interest rates next month.

The Brent crude futures rose 3.83% to settle at $82.49 a barrel after Iran's semi-official Fars news agency reported that an Iranian parliamentary committee is reviewing a preliminary bill that would bar 'hostile' vessels from transiting the Strait of Hormuz. The draft bill proposes fines of up to 20% of a ship's cargo value for violations.

The US Treasury yields increased as oil prices rose on concerns about US and Israeli access to the Strait of Hormuz and ahead of Friday's jobs report. The yield on benchmark US 10-year notes rose 5.67 basis points to 4.674%. The US dollar also strengthened against the Japanese yen, rising 0.44% to 158.45.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, said that 'there's a distaste for risk assets in the air.' He attributed this to higher oil and interest rates.