Oil Price Surge Triggers Global Stock Market Woes
Global stock markets have been under pressure due to rising oil prices and geopolitical tensions. The price of Brent crude crossed $100 per barrel on September 9, after new US-Iran military strikes and Houthi attacks on Saudi cities.
The Dow Jones fell 0.75%, the S&P 500 fell 0.30%, and the Nasdaq fell 0.35%. European stocks also lost ground, while gold rose 1.5% to $4,418 an ounce.
Higher oil prices can raise costs for airlines, transport firms, chemical makers, and factories, as well as increase fuel and food costs for consumers. The current shock has a wider effect, with the 10-year US Treasury yield standing at 4.794% on September 9, close to a recent three-year high.
The Federal Reserve now faces a harder choice, with about 70% of economists expecting the bank to hold rates at its next policy session meeting. However, confidence in this view has weakened since August, and US inflation data can shift that view fast.