Global Markets Reel as Oil Prices Surge Past $100

Global markets experienced a decline following the previous day's selloff, driven by concerns that oil prices above $100 could exacerbate the energy shock and as global bond yields reached new highs.

Wall Street futures were down ahead of the US Federal Reserve's interest rate announcement tomorrow. TSX futures followed suit, mirroring the downward sentiment.

Thierry Wizman, a global forex and rates strategist at Macquarie Group, attributed the rise in oil prices to Iran's shift in strategic military doctrine toward pre-emptive attack, which may prompt the US administration to re-engage in kinetic war after the mid-term elections.

Commodity markets also reflected this trend, with Brent crude futures rising 2.1% to $107.90 a barrel and West Texas Intermediate (WTI) futures increasing by 2.26% to trade at $103.70 a barrel.